The Deficit Reduction Act of 1984 (), also known as the DEFRA, was a federal law enacted in the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...
in 1984. Originally part of the stalled Tax Reform Act of 1983, it was adjusted and reintroduced as the Tax Reform Act of 1984. After passing in the House, it was merged with the Senate version into its final form. Collectively known as the Deficit Reduction Act of 1984, it was signed into law by president
Ronald Reagan
Ronald Wilson Reagan ( ; February 6, 1911June 5, 2004) was an American politician, actor, and union leader who served as the 40th president of the United States from 1981 to 1989. He also served as the 33rd governor of California from 1967 ...
on July 18, 1984.
Summary of provisions
The Office of Tax Analysis of the United States Department of the Treasury summarized the tax changes as follows:
* repealed scheduled 15% net interest exclusion ($900 cap)
* reduced benefits from income averaging
* reduced tax benefits for property leased by tax exempt entities
* temporarily extended federal telephone excise tax
The federal telephone excise tax is a statutory federal excise tax imposed under the Internal Revenue Code in the United States under on amounts paid for certain "communications services". The tax was to be imposed on the person paying for the co ...
(through 1987)
* increased depreciation lives for real property from 15 years to 18 years
References
External links
Full text of the Act
{{DEFAULTSORT:Deficit Reduction Act of 1984
United States federal taxation legislation
1984 in law
Presidency of Ronald Reagan
1984 in economics
98th United States Congress