Inside look at the 1982 tax law: An Interview with Senator Robert Dole;

              An Interview With Senator Robert Dole
^ _ zi
An Inside Look
at the
1982 Tax Law?
Two major tax laws have been passed in the first t w o years of the
Reagan administration—the Economic Recovery Tax Act of 1981 (ERTA)
and the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA). To
shed some light on the latter, John Connor, national director of tax, talked with
Republican Senator Robert Dole of Kansas during a filmed interview in
September for Touche Ross's tax seminars. As chairman of the Senate Finance
Committee, Senator Dole was a primary architect of the 1982 tax act. In the
conversation that follows, which was adapted from that filmed interview,
Senator Dole explains the intentions behind the bill and traces it from the
early planning stages to the president's desk. He also offers an insight into tax
reforms now looming on the horizon.
The 1982 act has widespread implications for both individuals and business.
Its origins differ somewhat from that of the 1981 ERTA bill, described by
Anthony Hope in the preceding article. The difference illustrates the
complexity of the legislative process as much as it does the search for tax equity
Connor: Senator Dole, from your
perspective, could you share with us
the background behind the 1982 federal
tax legislation?
Dole: To give this a little perspective, I
think you have to consider what we did
in 1981 — passing the most massive tax
cut in history—together with what we
did this year. When you fold the two
together, they make a great deal of
sense. This year we changed some of
the provisions which were a bit too
generous last year. More importantly,
we also made some changes that, in my
opinion, should have been made over
the past several years, such as closing
certain loopholes and improving
compliance.