Omnibus Budget Reconciliation Act of 1993

Omnibus Budget Reconciliation Act of 1993

The Omnibus Budget Reconciliation Act of 1993, also called the Deficit Reduction Act, modestly raised taxes and succeeded in wiping out the federal budget deficit for the first time in decades.

The bill added two higher taxes brackets: individual income tax rates of 36 percent and 39.6 (previously 31 percent had been the highest bracket). The bill included a 35 percent income tax rate for corporations and 4.3 cents per gallon increase in transportation fuels taxes.

Cry Wolf Quotes

…your economic program is a job killer. Your tax increases on the energy in this country will affect people from the automobile to the schoolhouse to the grocery shelves.

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Rep. John Kasich (R-OH), Congressional Record.

The punitive taxes included in this budget will do nothing to stimulate the economy. Deficit reduction will come from reducing spending and tightening our belts much like private citizens must do. Government must stop living beyond its means and then raising taxes to justify the additional spending. As I write this, the Senate considers the plan. I can only hope the Members of the other body who support this largest tax increase in American history know in advance that they must explain to their constituents how taking more of their hard-earned money will help stop runaway budget deficits as spending continues to increase.

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James T. Walsh (R-NY), Congressional Record.

The budget proposal offered by the Democrats is a recipe for economic and fiscal disaster. It proposes to increase taxes at a time when Americans are already overtaxed. It proposes to increase taxes at a time when we have a fragile economy--higher taxes will only stifle job creation and economic growth.

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Rep. John Kasich (R-OH), CNN.

[The voters] will remember who let loose this deadly virus into our economic bloodstream.

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Rep. Robert Michel (R-IL), The Los Angeles Times.

Evidence