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

[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.

The simple fact is the Clinton plan will not lower interest rates. It will not lower inflation. It will not create jobs. And it will not lower the deficit. The Clinton tax plan will spur inflation, lose jobs, increase the deficit, and hurt our economic growth. As most economists now agree, the Clinton plan must go.

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Rep. Wally Herger (R-CA), Congressional Record.

The impact on job creation is going to be devastating, and the American young people in particular will suffer a fairly substantial deferment of their lives because there simply won't be jobs for the next two to three years to go around to our young graduates across the country.

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Rep. Dick Armey, CNN

This plan will not work. If it was to work, then I'd have to become a Democrat and believe that more taxes and bigger government is the answer and it's not what the president ran on during the campaign. President Clinton is much different than candidate Clinton and that's the frustration.

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

Evidence