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
Mr. Chairman, the President's budget plan which is incorporated into this budget resolution imposes higher taxes and more deficit spending. We have been told that that kind of a budget package will have an impact on the economy. Certainly I agree. However, it will be the kind of impact that this country can't absorb. It will slow economic growth, contribute to the massive Federal deficit, and increase Government spending.
About the only positive environmental impact this tax package will produce is that in destroying 400,000 American jobs, there will be fewer commuters driving their cars to work each day! Between the Clean Air Act and this proposed tax, this country will lose almost 20 percent of its refinery capacity by the end of the decade. In addition to the refinery problem, the tax is punitive to clean fuels, providing little incentives for industries to switch to more environmentally sound fuels like natural gas.”
This budget calls for new taxes on gasoline and on Social Security, and yet President Clinton as a candidate condemned such taxes. Supporters say this budget reduces spending and will begin to get a handle on the national debt, yet even the President acknowledges that under this budget Federal spending will actually increase more than 20 percent over the next 5 years. And worse, the national debt will actually grow by $1 billion a day. But most importantly, this budget is a job killer-pure and simple.
But, I will tell you, this program will not give you deficit reduction. It will be a disaster for the performance of the economy because of the repressive impact of these taxes and, of course, the possible inflationary impact of the taxes, along with the labor-cost-increasing mandates that are already a part of the president's agenda.
Evidence
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Conservative Commentator Examines the History of Right-Wing Tax Cut Hypocrisy
Hard right-wingers fear-monger in the face of tax increases of both Republican and Democratic administations.
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Tax Cuts on the Rich Don't Spur Economic Growth
The Center for American Progress takes apart supply side myths.
