Tax Reform Act of 1993

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See: Revenue Reconciliation Act of 1993

Revenue Reconciliation Act of 1993

Legislation in the United States that raised certain taxes on certain income, including on some entitlements like Social Security. It was part of the broader Omnibus Budget Reconciliation Act of 1993, which raised taxes and cut some government spending in order to reduce the federal deficit. The Act came out of a theory that large deficits lead to inflation; this theory was rejected by both New Deal liberals and supply-side economics conservatives, both of whom believed that deficits are relatively unimportant. While the theory behind the Act remains controversial, it led to a projected budget surplus toward the end of the 1990s.

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