Tax Equity and Fiscal Responsibility Act

The Tax Equity and Fiscal Responsibility Act was passed in 1982, with the intent of raising tax revenues by closing certain loopholes and increasing the level of enforcement. The Act created a 10% withholding tax for dividends sent to accounts without tax identification numbers, eliminated the use of accelerated depreciation deductions by corporations, and altered the calculation of the federal unemployment tax by changing both the wage base and tax rate.