What is 'Tax Equity And Fiscal Responsibility Act Of 1982 - TEFRA'
Federal tax legislation passed in 1982 that modified some aspects of the Economic Recovery Tax Act of 1981 (ERTA). Both of these pieces of tax legislation took place during the Reagan Presidency.
Explaining 'Tax Equity And Fiscal Responsibility Act Of 1982 - TEFRA'
The ERTA was a piece of tax legislation that greatly lowered income tax rates, and all very high rates were given a maximum of 50%. The TEFRA modified aspects of the ERTA which caused concern over potential large budget deficits. TEFRA increased the tax received but not the tax rates. This was done by removing some of the tax breaks businesses received in the ERTA, such as the increase in the amount of accelerated depreciation that a company could deduct.
Tax Equity and Fiscal Responsibility Act of 1982heinonline.org [PDF]Fiscal Responsibility Act of 1982 (TEFRA), the fourth piece of major tax legislation in less than seven years. Though TEFRA has been said to provide the single largest tax increase in American history, President Reagan lobbied for it not as a tax bill, but as a revenue measure which, to his mind, in no way represented a backing-off from his vaunted" supply side-trickle down" economic program. In point of fact, the provisions of the Economic Recovery Tax Act of 1981 (ERTA), the cornerstone to the" supply side" program, remain largely intact …