The Tax Equity and Fiscal Responsibility Act (TEFRA) was enacted in 1982 to address various tax issues and improve federal revenue. It aimed to close tax loopholes, enhance tax compliance, and ensure that tax burdens were distributed more equitably among different income groups. TEFRA also introduced measures to control federal spending and reduce the budget deficit. One significant aspect of TEFRA was its impact on the Medicare program, as it established new payment systems for hospitals and healthcare providers. The act also included provisions for the taxation of certain benefits and aimed to improve the overall efficiency of the tax system.