 This top rate then fell to 28% in 1979 and further dropped to 20% in 1982.This top capital gains rate held until 1986 when the Tax Reform Act of 1986 re-raised it to 28% and 33% for all individuals subject to phase-outs.The Tax Reform Act of 1986 shifted capital gains to income for the first time thus establishing equal short-term capital gains taxes and marginal income tax rates.