Tax Equity And Fiscal Responsibility Act Of 1982

The Tax Equity and Fiscal Responsibility Act of 1982 was a reform law enacted to bring in more federal tax revenue. The Tax Equity and Fiscal Responsibility Act of 1982 was signed into law by president Reagan. The impetus for the Tax Equity and Fiscal Responsibility Act of 1982 arose from concerns that tax reductions enacted in 1981 (i.e. Economic Recovery Tax Act of 1981 or ERTA) would result in higher budget deficits. Among its many provisions, the Tax Equity and Fiscal Responsibility Act of 1982 increased the penalties for noncompliance with tax laws. The Tax Equity and Fiscal Responsibility Act of 1982 also facilitated tax collection by the IRS. Other revenue-enhancing measures in the Tax Equity and Fiscal Responsibility Act of 1982 included a strengthening of the alternative minimum tax, higher excise taxes on phone service, cigarettes, and airline tickets, and limits on accelerated depreciation deductions. Note that not all measures in the Tax Equity and Fiscal Responsibility Act of 1982 went into effect. Indeed, an intensive lobbying campaign overturned a Tax Equity and Fiscal Responsibility Act of 1982 provision that directed banks and brokerages to send the IRS 10% of the interest and dividend income generated by shareholder accounts. The Tax Equity and Fiscal Responsibility Act of 1982 is also known as TEFRA.