Tax Equity and Fiscal Responsibility Act of 1982

The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) was a law enacted to reduce the U.S. federal budget deficit. It included measures to increase revenue through tax hikes and reduce government spending, primarily targeting deficits from the early 1980s. TEFRA also implemented reforms to improve tax compliance and control inflation. Essentially, it was a bipartisan effort to balance the federal budget by raising taxes and tightening fiscal policies, aiming to stabilize the economy and control federal debt without significantly impacting economic growth.