Bill Clinton on Tax Reform
President of the U.S., 1993-2001; Former Democratic Governor (AR)
Restrain spending AND raise taxes to reduce debt
The debt is projected to grow to 100% of the GDP by 2021 and almost 200% by 2035. [The choices we face are]: restrain spending below current projections, raise taxes, and grow the economy faster. We have to do all three.
We have to invest more in
21st-century infrastructure--in faster broadband, a modern national electrical grid, more well-distributed clean-power generation, modernized water and sewer systems, ports and airports, trains, roads, and bridges. We'll have to do a better job of
educating and training a higher percentage of our people to fill the best jobs.
The Simpson-Bowles Commission recommended lowering the corporate tax rate and eliminating most of the deductions and credits that allow many very profitable companies to
avoid a large percentage of the taxes they would otherwise pay, while others pay the legal maximum of 35%. The 35% rate is now the second-highest among wealthy nations, but the actual amount paid on corporate income is 23%, ranking us in the middle.
Source: Back to Work, by Bill Clinton, p. 56-57&77
, Nov 8, 2011
Cutting taxes for the rich hurts deficit and future
Q: What is it that Democrats and Republicans don't understand about how to make the economy work again?
A: Republicans believe that if you cut taxes, especially for upper-income people, that's always going to work, no matter what it does to
the deficit and to our investment in the future. The republicans can't be completely allergic to taxes. The Democrats can't be completely allergic to changes in health care delivery.
Source: Time Magazine on "Back To Work" book tour by Bill Clinton
, Jan 21, 2011
OpEd: Broke campaign promise by tax rise & no spending cuts
Tim Penny was a Democrat from Minnesota whose frustration with Washington politics reached a tipping point when Pres. Clinton proposed a big tax increase with few spending cuts, going against his own campaign promise. Tim had enough with empty Washingto
Tim's response to Bill Clinton's about-face actually cost the good people back home, but very quickly Tim took on a kind of folk-hero status--in Congress, in Minnesota, and across this great land. His stature grew enormously, simply because he
took a stand. He was disillusioned with Clinton's plan, and with a political system that seemed bound to support it; more to the point, he didn't like how Clinton promised one thing and then went out and did another, so he stood against it.
Source: Stand For Something, by John Kasich, p. 78-79
, May 10, 2006
My tax cut is the sacrifice of all of us
The Republicans protected my tax cut at all costs while withholding promised funding to the Leave No Child Behind Act, leaving 2.1 million children behind, cutting 140,000 unemployed workers out of their job training programs, 100,000 working families ou
of their child care assistance, and worst of all, while cutting 300,000 poor children out of their after-school programs, when we know it keeps them off the streets, out of trouble, in school, learning, going to college and having a good life.
They protected my tax cuts while dramatically raising the out-of-pocket costs of health care to our veterans and weakening or reversing very important environmental measures, from clean air to forest protection. Now everyone in America had to sacrifice
except the wealthiest Americans. And almost all of us, from Republicans to independents and Democrats, wanted to be asked to do our part, too. But all they asked us to do was to expend the energy necessary to open the envelopes containing our tax cuts.
Source: Speech to the Democratic National Convention
, Jul 29, 2004
Never thought I’d be so well cared for by the Republicans
For the first time when America was in a war footing in our whole history, they gave two huge tax cuts, nearly half went to the top 1 percent of us. When I was in office, on occasion, the Republicans were kind of mean to me. But as soon as I got out and
made money, I became the most important group in the world to them. It’s amazing. I never thought I’d be so well cared for by Bush and the Republicans. I almost sent them a thank you note for my tax cuts, until I realized you were paying the bill for it.
Source: Speech to the Democratic National Convention
, Jul 29, 2004
Republican tax cut was too big & too bloated
I vetoed the Republican tax cut because it was “too big, too bloated,” and put too great a burden on America’s economy. Under the budget rules, the bill would have forced large cuts on education, health care, and environmental protection. It would have
prevented us from extending the Social Security trust funds, & from adding a prescription drug benefit to Medicare. We were going to have a surplus this year of about $100 billion, but the proposed GOP tax cut would cost nearly $1 trillion over a decade
Source: My Life, by Bill Clinton, p.870
, Jun 21, 2004
Proposed raising taxes on rich even if no revenue increase
President Clinton at one point proposed raising taxes on the rich although it did not appear that it would increase the tax revenues received from them. A substantial proportion of the public said they favored higher taxes on high-income earners even is
that did not increase the total taxes such people paid. The effect would not be to help anyone else but merely to pull down the better off. The motivation can only be envy, and it is surprising that so many people would admit harboring that emotion.
Source: Slouching Towards Gomorrah, by Robert Bork, p. 73
, Dec 16, 2003
Bush tax cuts are fiscally irresponsible in long run
The Bush administration insisted on passage of the tax cuts before anyone knew what our income was going to be, what our expenses were going to be, or what emergencies we might face. In fact, our income went down, our expenses went up, and we had
a terrible emergency. Also, these tax cuts have too little stimulus in the short run and too little fiscal responsibility for the long run, with too many of the benefits going to the wealthiest Americans, who don't need them.
Source: Crossroads, by Andrew Cuomo, p. 38
, Oct 14, 2003
Target tax cuts on IRAs, education, & families
To achieve more growth and more economic opportunity for working families, I have a balanced-budget plan with targeted tax cuts for America’s families:
- an additional $500 tax credit for each of their children;
- more generous Individual
Retirement Accounts with funds that can be used without penalty for important investments;
- a tax deduction for the cost of college up to $10,000 a year, and a tax credit up to $1,500 a year for up to two years of community college.
Source: Between Hope and History, by Bill Clinton, p. 31
, Jan 1, 1996
Across-the-board tax cuts are irresponsible
Some [of our political opponents] are offering a strategy they have offered before: an across-the-board tax cut bigger than we can afford. If implemented, it will either explode the deficit, raise interest rates, & slow the economy; or if it is paid for,
it will require even bigger cuts in Medicare, Medicaid, education, and protection of the environment than the budget I vetoed. Either way, it will reduce opportunity, slow the economy, and ultimately hurt hard-working Americans. It is not responsible.
Source: Between Hope and History, by Bill Clinton, p. 58
, Jan 1, 1996
New Covenant for Economic Change: middle class tax cuts
In a speech on November 20, 1991, Clinton tried to present both a broad vision and a specific plan. He called it "A New Covenant for Economic Change." He spoke at length about his investment ideas and proposed a middle-class tax cut to be paid for with
higher taxes on the rich. "In a Clinton Administration, we'll cut income tax rates on the middle class: an average family's tax bill will go down 10%, a savings of $350 a year. And the deficit won't go up--instead those earning over
$200,000 a year will pay more."
Clinton did not merely cast the middle-class themes as wise social policy or smart political choice.
He raised them to the spiritual level. "These are not just economic proposals," he said, adding the immodest assertion, "they are the way to save the very soul of our nation." The speech drew modest attention.
Source: The Agenda, by Bob Woodward, p. 30
, Jun 6, 1994
Refused pledge for middle-class tax cut
On December 6, in focus groups in New Jersey, the significant finding was the dog didn't bark. When the moderator in the discussion asked the participants to name Clinton's campaign promises, no one mentioned the middle-class tax cut.
When asked about it directly, the voters, who were middle class, said they did not expect it. Some of them accurately recalled that in one of the debates Clinton had refused to make a flat pledge to cut middle-class taxes.
Many also indicated they did not think such a tax cut would be good policy. It was clear too that these people wanted to make some sacrifices if they believed the problems of the country were being faced.
A tax cut seemed too much of a quick fix and sounded like a Reagan and Republican idea.
Clinton's economic plan would have a stronger appeal if everyone was asked to contribute something to the recovery effort.
Source: The Agenda, by Bob Woodward, p. 72
, Jun 6, 1994
Page last updated: Apr 28, 2013