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The tobacco plant, Nicotiana tabacum. Public-domain photograph.

The tobacco plant, Nicotiana tabacum. Public-domain photograph.

WallPost·America 250 · Article 218 of 250
The Decision · 1993

Taxes Go Up

At a glance

Clinton's 1993 budget raised income taxes to attack the deficit.

If money is tight

If money is tight, a higher gas tax is a weekly fact and an income-tax increase may not reach you.

If you are in the middle

If you are in the middle, the top-bracket change is aimed above you, and the deficit argument is about your future taxes.

If you already have assets

If you have savings, a higher top rate changes the after-tax return and the politics of the bond market.

The 1993 budget law raised the top income tax rate and the federal gasoline tax.

The stated target was the deficit.

Budget surpluses did arrive later in the decade, during a boom, which is a fact about the years that followed and not a proof that one statute produced them.

Source: Omnibus Budget Reconciliation Act of 1993.