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 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.
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.
I rise today to sound the alarm on a provision of the proposed reconciliation package that has ominous implications for New York City. The proposed reduction of the business-entertainment deductions contained in reconciliation could produce a job loss of at least 15,000 in the New York metropolitan area alone, and hundreds of thousands more job losses in business and tourist centers across America. The provision is, in effect, a new tax…If adopted, this provision would inflict deep wounds on New York City's second largest industry-tourism. Many experts fear that with the new tax, companies would drastically scale back use of meals and entertainment as part of doing business. That would directly affect restaurants, hotels, and theaters and trigger adverse ripple effects in industries like catering and conventions. New York is the premier arts and business center in the United States, so its economy depends heavily on business and entertainment. This reform would not only hurt the business community; it would also hurt the beleaguered arts community….The economic repercussions will be felt all across America: from New York City to Chicago to Las Vegas to Hawaii. As an export product, travel and tourism accounts for 11 percent of total U.S. exports of goods and services. Industry experts estimate that as much as $1 billion in new tax revenue will be raised from Manhattan alone. This is an ominous prospect. Worst of all, experts fear that this provision will be counterproductive as a revenue raiser, bringing minimal revenue benefit at great human cost.
Day after day, tomorrow after tomorrow, in every purchase they make, every trip they take, in every school, in every church, in every workplace, in every home, in ways that they may not even be aware of, the Clinton energy tax will be a silent, greedy destroyer of their family budget. And they will remember who set loose this dreadful virus into the economic bloodstream of our Nation
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.

