Clinton's Tax Law Increases Tax Bill of Nation's Affluent

By Bovee, Tim | THE JOURNAL RECORD, April 14, 1995 | Go to article overview

Clinton's Tax Law Increases Tax Bill of Nation's Affluent


Bovee, Tim, THE JOURNAL RECORD


WASHINGTON _ As the Monday filing deadline looms, miserable taxpayers can find company among the affluent. Well-to-do Americans' taxes surged 16 percent in 1993, the first year of revisions pressed into law by President Clinton.

People who earned $100,000 or more owed the government an additional $31 billion compared with 1992, according to an Associated Press computer-assisted analysis of Internal Revenue Service data. Everyone else together owed about $3 billion more.

The tax-law revisions were aimed specifically at reducing the deficit by tapping people with big incomes. When President Clinton proposed raising taxes on high incomes, experts expected the affluent to create shelters and loopholes to blunt the impact.

It didn't happen.

The law took effect in August 1993, but the new rules were applied retroactively to January. That took some tax planners by surprise.

"We did not see a new surge of tax shelters," said Robert McIntyre of Citizens for Tax Justice, a Washington advocacy group. "It's hard to do, and it takes time."

Clinton had argued that upper-income Americans had paid less than their share of taxes in the years when Republican presidents Reagan and Bush sat in the White House.

He said the law asked "the well-off to pay their fair share, requiring that at least 80 percent of the new tax burden fall on those making more than $200,000 a year, and very little on any other Americans, not to punish the successful, but simply to ask something of the very people whose incomes went up most and whose taxes went down during the 1980s."

The bill added two new tax brackets _ 36 percent for income beginning at $115,000 and 39.6 percent beginning at $250,000 _ but generally left other tax rates alone.

While tax liability declined for people in many brackets, for those making more than $100,000 it amounted to 25.5 percent of their income before deductions, up from 23 percent the previous year. The law allowed them to spread actual payment of their taxes over several years.

The tax increases, while aimed at the wealthy, made no distinction between taxpayers living in high-cost and low-cost areas. Also, the bill didn't differentiate between single-income and dual-income households.

Tax returns reporting $100,000 or more in income accounted for just 4 percent of the 114.6 million returns filed for 1993. But they amounted to 24 percent of the $3.7 trillion in individual income reported.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Clinton's Tax Law Increases Tax Bill of Nation's Affluent
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.