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The Reconciliation Bill: Expanding Tax Hikes, Disappearing Spending Cuts

President Bill Clinton is asking Congress to enact the largest tax increase ever imposed upon any country in history. The White House claims that this tax increase is needed to reduce the budget deficit. Yet the Administration's own projections show that adoption of the Clinton budget actually will increase the deficit, up from $3 10 billion this year to $431 billion by 2003. The White House claims that higher taxes will stimulate eco- nomic growth and job creation. Yet the Administration is unable to point to any country, at any point in history, that has ever taxed its way to prosperity. Of all the President's claims, however, the most remarkable is the assertion that the budget package is a fair and balanced approach to deficit reduction. The White House maintains that the package is evenly divided be- tween spending cuts and revenue increases. This is a breathtaking claim, given the hard numbers in the package passed by the House.

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