[step:Eliminate all formulas from existential elimination by induction]
Assume that every existential $L$-formula is equivalent modulo $T$ to a quantifier-free $L$-formula. We prove by structural induction on $L$-formulas that every $L$-formula is equivalent modulo $T$ to a quantifier-free formula.
Atomic formulas are already quantifier-free. If $\alpha(x)$ and $\beta(x)$ are equivalent modulo $T$ to quantifier-free formulas $\alpha_0(x)$ and $\beta_0(x)$, then $\neg\alpha(x)$, $\alpha(x)\wedge\beta(x)$, and $\alpha(x)\vee\beta(x)$ are equivalent modulo $T$ to the quantifier-free formulas $\neg\alpha_0(x)$, $\alpha_0(x)\wedge\beta_0(x)$, and $\alpha_0(x)\vee\beta_0(x)$, respectively.
It remains to handle quantifiers. Suppose $\alpha(x,y)$ is equivalent modulo $T$ to a quantifier-free formula $\alpha_0(x,y)$. Then
\begin{align*}
T \models \forall x\,\forall y\bigl(\alpha(x,y) \leftrightarrow \alpha_0(x,y)\bigr),
\end{align*}
so
\begin{align*}
T \models \forall x\left(\exists y\,\alpha(x,y) \leftrightarrow \exists y\,\alpha_0(x,y)\right).
\end{align*}
The formula $\exists y\,\alpha_0(x,y)$ is existential with quantifier-free matrix, so by the hypothesis there is a quantifier-free formula $\theta(x)$ such that
\begin{align*}
T \models \forall x\left(\exists y\,\alpha_0(x,y) \leftrightarrow \theta(x)\right).
\end{align*}
Therefore $\exists y\,\alpha(x,y)$ is equivalent modulo $T$ to $\theta(x)$.
For a universal quantifier, use the logical equivalence
\begin{align*}
\forall y\,\alpha(x,y) \leftrightarrow \neg\exists y\,\neg\alpha(x,y).
\end{align*}
The formula $\neg\alpha(x,y)$ is equivalent modulo $T$ to a quantifier-free formula by the Boolean step, and the preceding existential case eliminates $\exists y\,\neg\alpha(x,y)$. Negating the resulting quantifier-free formula gives a quantifier-free formula equivalent modulo $T$ to $\forall y\,\alpha(x,y)$.
By structural induction, every $L$-formula is equivalent modulo $T$ to a quantifier-free $L$-formula. Hence $T$ has quantifier elimination.
[/step]