Omnibus Budget Reconciliation Act Of 1993

What Does Omnibus Budget Reconciliation Act Of 1993 Mean?

The Omnibus Budget Reconciliation Act of 1993, also known as the Deficit Reduction Act, was passed as part of President Clinton’s first budget. Its primary goal was to address the nation’s debt by increasing taxes on high-income individuals and corporations.

Insuranceopedia Explains Omnibus Budget Reconciliation Act Of 1993

Before President Clinton’s election, the U.S. faced significant economic challenges, particularly the growing national debt. Upon taking office, Clinton enacted the Omnibus Budget Reconciliation Act of 1993 to address the debt. This included increasing taxes to 36% for individuals earning more than $115,000 and raising the corporate income tax rate from 34% to 36%.

After narrowly passing both houses of Congress, Clinton signed the budget into law in August 1993.