Legislation: Tax Equity and Fiscal Responsibility Act
September 03,1982
Political

POLITICAL EVENT

The sweeping tax cuts of 1981 combined with failures to cut spending resulted in a massive budget shortfall that was further amplified by the recession of the early 1980s. To address this problem, the Tax Equity and Fiscal Responsibility Act rescinded some of the tax cuts from the year before in exchange for an agreement from Congress to control spending.