6863 – the Supplemental Appropriations Act of 1982 which Ronald Reagan claimed would "bust the budget" [7] was passed by both houses of Congress over his veto.

The United States Court of Appeals for the Ninth Circuit ruled against Armstrong, saying: "We therefore conclude that the Senate did not exceed its authority under the origination clause when it proposed the extensive amendments that ultimately became TEFRA.

"[11] However, this "increase" was achieved primarily through the cancellation of future tax cuts scheduled by ERTA the year before that had yet to take effect at the time of TEFRA's passage.

[12] A chart from the United States Department of the Treasury study[3] showing the bill's effect on government revenues is reproduced below.

The study makes note that these government revenue estimates do not take into account the effect of the bills on GDP, and therefore, are not inclusive of resulting increases in revenue that could occur from an increase in GDP:[3] The bill also created a hospice benefit to the Medicare program for the terminally ill with a 1986 sunset provision.