[Congressional Record Volume 142, Number 13 (Wednesday, January 31, 1996)]
[Senate]
[Page S582]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              THE TAX CODE

  Mr. INHOFE. Mr. President, first of all, let me stand up and be the 
first one to officially accept the challenge made by the distinguished 
Senator from Arizona. He is absolutely correct in his analysis as to 
what is happening in the country right now. It is refreshing to listen 
to someone who can look at historical data and come to a decision that 
is really incontrovertible.
  The Senator from Arizona quoted the Kemp report as to what can happen 
in order to stimulate the economy and actually result in increasing 
revenues by reducing marginal tax rates. If we think back and look at 
what happened in 1980, the total revenues derived from our marginal tax 
rates was $244 billion. In 1990, it was $466 billion. And during that 
10-year period, we had a greater reduction in marginal rates, including 
capital gains. Obviously, what happened is exactly what the Senator is 
suggesting would happen in the future if we would we do this now.
  I have heard so many times on this floor people say look what 
happened in the 1980's when we had a President who was reducing tax 
rates and the deficit went up. The deficit went up not because revenues 
were not coming in. Clearly they were coming in at a much more rapid 
rate as a result of giving the free enterprise system a chance to 
breathe by reducing marginal rates.

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