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

[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.

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.

Evidence