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 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.

After careful analysis, I decided that I could not support this package. It goes too far in raising taxes and not far enough in cutting spending….I fear that this package, if enacted as passed by the House, will come back to haunt all of us because of its emphasis on taxes over spending cuts. We must not abandon the more fiscally responsible, new Democrat approach on which we were elected.

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Carolyn Maloney (D-NY), Congressional record.

Do you know what? This is now your package. We will come back here next year and try to help you when this puts the economy in the gutter. And virtually every major economic estimating firm in this country says your bill is going to kill jobs. That is why we are passionate about it.

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

Evidence