this changed after the Democratic gains in the 1982 election, with House control switching to liberals within the Democratic caucus. In July 1981, the Senate voted 89–11 in favor of the tax cut bill favored by Reagan, and the House subsequently approved the bill in a 238–195 vote. The Economic Recovery Tax Act of 1981 cut the top marginal tax rate from 70% to 50%, lowered the capital gains tax from 28% to 20%, more than tripled the amount of inherited money exempt from the estate tax, and cut the corporate tax. Reagan's success in passing a major tax bill and cutting the federal budget was hailed as the "Reagan Revolution" by some reporters; one columnist wrote that the Reagan's legislative success represented the "most formidable domestic initiative any president has driven through since the Hundred Days of Franklin Roosevelt." Later tax acts Faced with concerns about the mounting federal debt, Reagan agreed to raise taxes, signing the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA). Many of Reagan's conservative supporters condemned TEFRA, but Reagan argued that his administration would be unable to win further budget cuts without the tax hike. Among other provisions, TEFRA doubled the federal cigarette tax and rescinded a portion of the corporate tax cuts from the 1981 tax bill. By 1983, the amount of federal tax had fallen for all or almost all American taxpayers, but most strongly affected the wealthy; the proportion of income paid in taxes by the richest one percent fell from 29.8 percent to 24.8 percent. Partly due to the poor economy, Reagan's legislative momentum dissipated after his first year in office, and his party lost several seats in the House in the 1982 congressional elections. Compared to other midterm elections, the losses were relatively small for the party holding the presidency, but conservative Democrats were less open to Reagan's initiatives after 1982. As deficits continued to be an issue, Reagan signed another bill that raised taxes, the Deficit Reduction Act of 1984. With Donald Regan taking over as Chief of Staff in 1985, the Reagan administration made simplification of the tax code the central focus of its second term domestic agenda. Working with Speaker of the House Tip O'Neill, a Democrat who also favored tax reform, Reagan overcame significant opposition from members of Congress in both parties to pass the Tax Reform Act of 1986. The act simplified the