Omnibus Budget Reconciliation Act of 1993
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| Long title | Omnibus Budget Reconciliation Act |
|---|---|
| Colloquial acronym(s) | OBRA-93 |
| Nickname(s) | Deficit Reduction Act of 1993, Revenue Reconciliation Act of 1993 |
| Enacted by the | 103rd United States Congress |
| Effective | August 10, 1993 |
| Citations | |
| Public Law | 103-66 |
| Stat. | 107 Stat. 312 through 685 Stat. 1025 (374 pages) |
| Legislative history | |
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The Omnibus Budget Reconciliation Act of 1993 (or OBRA-93[1]) was a federal law that was enacted by the 103rd United States Congress and signed into law by President Bill Clinton. It has also been referred to, unofficially, as the Deficit Reduction Act of 1993. Part XIII, which dealt with taxes and is also called the Revenue Reconciliation Act of 1993.
Specifics
- It created 36 percent and 39.6 income tax rates for individuals in the top 1.2% of the wage earners.[2]
- It created a 35 percent income tax rate for corporations.
- The cap on Medicare taxes was repealed.
- Transportation fuels taxes were raised by 4.3 cents per gallon.
- The taxable portion of Social Security benefits was raised.
- The phase-out of the personal exemption and limit on itemized deductions were permanently extended.
- Part IV Section 14131: Expansion of the Earned Income Tax Credit and added inflation adjustments
Alternatives
Some alternatives to the bill included a proposal by Senator David Boren (D-OK), which among other things would have kept much of the tax increase on upper-income payers but would have eliminated all energy tax increases while also scaling back the Earned Income Tax Credit. It was endorsed by Bill Cohen (R-ME), Bennett Johnston (D-LA), and John Danforth (R-MO). Boren's proposal never passed committee. Clinton himself claimed he had an alternative tax proposal that favored taxes on energy, but later passed a bill that raised income taxes on middle income and higher income Americans because of no Republican support for the budget. Later in 1995 he expressed belief that he had raised taxes too much (In 1997 he later cut the capital gains tax from 28 to 20%).[3][4]
Another proposal was offered in the House of Representatives by John Kasich (R-OH). He sponsored an amendment that would have reduced the deficit by cutting $355 billion in spending with $129 billion of the cuts coming from entitlement programs (the actual bill cut entitlement spending by only $42 billion). The amendment would have eliminated any tax increases. The amendment failed by a 138-295 vote with many Republicans voting against the amendment and only six Democrats voting in favor of the amendment.
Legislative history
Ultimately every Republican in Congress voted against the bill, as did a number of Democrats. Vice President Al Gore broke a tie in the Senate on both the Senate bill and the conference report. The House bill passed 219-213 on Thursday, May 27, 1993. The House passed the conference report on Thursday, August 5, 1993, by a vote of 218 to 216 (217 Democrats and 1 independent (Sanders (I-VT)) voting in favor; 41 Democrats and 175 Republicans voting against). The Senate passed the conference report on the last day before their month's vacation, on Friday, August 6, 1993, by a vote of 51 to 50 (50 Democrats plus Vice President Gore voting in favor, 6 Democrats (Lautenberg (D-NJ), Bryan (D-NV), Nunn (D-GA), Johnston (D-LA), Boren (D-OK), and Shelby (D-AL) now (R-AL)) and 44 Republicans voting against). President Clinton signed the bill on August 10, 1993.
References
- ↑ Pub.L. 103–66, 107 Stat. 312, enacted August 10, 1993.
- ↑ Greenhouse, Steven (February 18, 1993). "CLINTON'S ECONOMIC PLAN: Impact on Individuals; Middle Class and Wealthy To Bear Brunt of New Taxes". Nicholas Bell (New York Times). Retrieved February 18, 1993.
- ↑ Pardum, Todd (1995-10-19). "Clinton Angers Friend and Foe In Tax Remark". New York Times. Retrieved 2012-09-09.
- ↑ Auten, Gerald (2010). "Capital Gains Taxation". Urban Institute. Retrieved 2012-09-09.
External links
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