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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 Specifically, the law created a 10% withholding for dividends, repealed accelerated depreciation deductions used by corporations, and increased both the wage base and tax rate for the federal unemployment tax.


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