Tax Equity And Fiscal Responsibility Act Of 1982 - TEFRA
The Tax Equity and Fiscal Responsibility Act of 1982, a.k.a. TEFRA, passed to increase revenue for the U.S. in the early 80s. That meant federal spending cuts as well as tax increases.
TEFRA came right on the heels of ERTA, the Economic Recovery Tax Act of 1981. ERTA led to major tax cuts, which was cool for a hot sec...until it wasn’t. Incoming federal revenue was going down, and government spending was only increasing. Rut-roh. TEFRA put a break on ERTA by scaling back those income tax cuts, increasing corporate taxes a bit, closing tax loopholes, and adding some excise taxes, like on cigarettes.
Where ERTA was all fun and games (yay to fewer taxes), TEFRA was a reality check, making both corporations and individuals more accountable for their tax liability. Ultimately, TEFRA helped rein in the federal deficit.
Reagan, who signed TEFRA into law, wasn’t a fan. He’d rather be known as the anti-tax party guy with ERTA. Understandable. Regardless, the economy boomed after ERTA according to the Bureau of Economic Analysis. If only Reagan had known this in hindsight, he would’ve been more stoked about signing TEFRA into law.
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Finance: What is the IRS?19 Views
Finance allah shmoop What is the i r s Well
i rest might be the three most hated letters in
the alphabet Well after d m v a pms and
well maybe std The i r s is the internal
revenue service Their internal i e inside the government they're
in charge of collecting revenue A k a They take
money from your pocket in the form of taxes and
they deliver it to uncle sam and they you know
service you and it doesn't feel good So yeah these
are the guys from the us treasury department who checked
to make sure you filled out your income tax forms
correctly and submitted the proper amount And if you screwed
up in any way they will let you know about
it and a half in the form of angry letters
Phone calls knocks on your front door rocks through your
back window Whatever it takes to get you to pay
your fair share of taxes Like why should you get
away with not paying when the jones has paid all
they owed Or the irs can do even worse and
audit you with an audit he irs will request extensive
and very specific information and records from you Paycheck deductions
all kinds of things You claim that you did that
were deductible that may or may not have been forcing
you to spend hours upon hours at your public storage
unit digging through boxes you hoped and prayed you'd never
see again Well after the third solid week of having
your financial history poked and prodded like you've had to
turn your head and cough you uh might actually be
ready and willing to trade in those three letters of 00:01:35.13 --> [endTime] irs for rough one of those stds instead
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