What type of bonds did the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) effectively eliminate?

The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) aimed to eliminate certain tax advantages related to specific types of bonds, particularly those that were bearer bonds. Bearer bonds are debt securities that are not registered in the name of the owner, making them easier to transfer and trade, but also more susceptible to tax evasion and lack of accountability in ownership. By eliminating the use of bearer bonds, TEFRA sought to increase transparency and ensure that tax obligations were accurately met. This reform helped the government track ownership and enforce tax laws more effectively, marking a significant shift in bond regulations.

In contrast, registered bonds, unsecured bonds, and serial bonds serve different purposes and maintain specific characteristics unrelated to the changes brought about by TEFRA. Registered bonds are associated with the owner's name and provide a record of ownership, while unsecured bonds refer to debt instruments without collateral backing, and serial bonds are issued with staggered maturities.