Tax Equity and Fiscal Responsibility Act of 1982
Definition
TEFRA. A federal law signed by President Ronald Reagan in 1982 that reversed some of the tax cuts from the previous year's Economic Recovery Tax Act (ERTA). Specifically, the law created a 10% withholding for dividends, repealed accelerated depreciation deductions used by corporations, and increased both the wage base and tax rate for the federal unemployment tax.
