Tax Equity and Fiscal Responsibility Act of 1982

Tax Equity and Fiscal Responsibility Act of 1982

TEFRA was signed by Ronald Reagan as a tool to close the huge budget gaps left by his 1981 tax cuts and ever-mounting defense spending. It closed tax loopholes, instituted excise taxes, and altered various tax rules rather than raising income taxes. However, many conservatives still vehemently opposed it.

Cry Wolf Quotes

Every school child knows you don't raise taxes in a recession unless you want to make it worse.

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Editorial, The Wall Street Journal's arguing against Reagan’s TEFRA tax hike.

The true purpose of the tax bill is to finance a further expansion of government. For all of the yelling and kicking, Congress still has done nothing serious to curb government spending. Therefore we have a swelling deficit. And because of the deficit, we’re told, taxes must go up.

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Editorial, The Wall Street Journal's arguing against Reagan’s TEFRA tax hike.

[There is] no doubt that it [TEFRA] will curb the economic recovery everyone wants.

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The U.S. Chamber of Commerce, 1982.

Evidence