Tax Equity and Fiscal Responsibility Act of 1982

Tax Equity and Fiscal Responsibility Act of 1982

Long title	An act to provide for tax equity and fiscal responsibility, and for other purposes.
Acronyms (colloquial)	TEFRA
Enacted by	the 97th United States Congress
Citations
Public law	97-248
Statutes at Large	96 Stat. 324
Legislative history
Introduced in the House as H.R. 4961 by Pete Stark (D–CA) on November 13, 1981 Committee consideration by House Ways and Means, Senate Finance Passed the House on December 15, 1981 (voice vote) Passed the Senate on July 23, 1982 (50–47) Reported by the joint conference committee on August 15, 1982; agreed to by the House on August 19, 1982 (226–207) and by the Senate on August 19, 1982 (52–47) Signed into law by President Ronald Reagan on September 3, 1982

The Tax Equity and Fiscal Responsibility Act of 1982 (Pub. L.Tooltip Public Law (United States) 97–248),^[1] also known as TEFRA, is a United States federal law that rescinded some of the effects of the Kemp-Roth Act passed the year before. Between summer 1981 and summer 1982, tax revenue fell by about 6% in real terms, caused by the dual effects of the economy dipping back into recession (the second dip of the "double dip recession") and Kemp-Roth's reduction in tax rates, and the deficit was likewise rising rapidly because of the fall in revenue and the rise in government expenditures. The rapid rise in the budget deficit created concern among many in Congress. TEFRA was created to reduce the budget gap by generating revenue through closure of tax loopholes; introduction of tougher enforcement of tax rules; rescinding some of Kemp-Roth's reductions in marginal personal income tax rates that had not yet gone into effect; and raising some rates, especially corporate rates. TEFRA was introduced November 13, 1981 and was sponsored by US Representative Pete Stark of California. After much deliberation, the final version was signed by President Ronald Reagan on September 3, 1982.