Tax Equity and Fiscal Responsibility Act (TEFRA)

The Tax Equity and Fiscal Responsibility Act (TEFRA), passed in 1982, aimed to improve tax fairness and federal budget rules. It introduced measures to close tax loopholes, reduce the national deficit, and make tax laws more equitable for all taxpayers. TEFRA also addressed spending on health programs, including Medicaid, and established limits on certain deductions and tax shelters. Essentially, it sought to streamline the tax system, ensuring that everyone pays their fair share while also promoting fiscal responsibility in government spending.