[Congressional Record Volume 142, Number 96 (Wednesday, June 26, 1996)]
[Senate]
[Page S7053]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               SURGING TAX BURDEN UNDER PRESIDENT CLINTON

 Mr. ABRAHAM. Mr. President, under President Bill Clinton, the 
Federal tax burden as a percentage of national income has risen to the 
second highest level in American history. As reported by economist 
Bruce Bartlett, according to the U.S. Department of Commerce, in the 
first quarter of 1996 Federal taxes consumed 20.5 percent of gross 
domestic product. Only during periods of war and other unique economic 
circumstances has the tax burden risen to such levels. For instance, at 
the height of World War II in 1945, and of the Vietnam war in 1969, 
Federal taxes took only 20.1 percent and 20.3 percent of GDP, 
respectively. During the late 1970's and early 1980's, double-digit 
inflation and a Tax Code that was not indexed for inflation pushed the 
tax burden to an all-time high of 20.8 percent of GDP. President 
Clinton's 1993 tax increase--the biggest tax increase in the history of 
the world--is largely responsible for raising the tax burden from 19.2 
percent of GDP in President Bush's last year to today's 20.5 percent of 
GDP. In my view, there is absolutely no justification for imposing such 
a heavy tax burden on the American people. We ought to let American 
people keep more of what they earn so that they can do more for their 
families and communities. And the best way to accomplish this is to 
reduce income tax rates for everyone by at least 15 percent.
  I ask that Mr. Bartlett's Detroit News editorial be printed in the 
Record immediately following my remarks.
  The editorial follows:

                 [From the Detroit News, June 24, 1996]

                  A Surging Record of Clinton Tax Load

                          (By Bruce Bartlett)

       Recently released data show federal taxes continuing their 
     relentless upward trend. As I have previously reported, 
     federal taxes consumed 20.4 percent of the gross domestic 
     product (GDP) last year--the second highest level in American 
     history.
       According to the U.S. Department of Commerce, however, in 
     the first quarter of 1996 federal revenues have risen by 
     another 0.1 percent to 20.5 percent of GDP. As the figure 
     indicates, federal revenues have now risen by 1.5 percentage 
     points of GDP during the Clinton administration.
       This works out to an increase of just over 0.1 percent of 
     GDP every quarter Bill Clinton has been in office. On this 
     basis, we can anticipate that by the fourth quarter of 1996 
     federal revenues will equal their all-time high of 20.8 
     percent.
       The Congressional Budget Office now estimates that gross 
     domestic product will amount to $7,584 billion in 1996. Thus 
     if revenues were simply to return to the level they were at 
     when Bill Clinton took office, we would have to cut taxes by 
     $114 billion this year. And every quarter that tax revenues 
     as a share of GDP rise another 0.1 percent, we must increase 
     the size of the tax cut by an additional $7.6 billion.
       Predictably, the Clinton administration is hostile to the 
     idea of a tax cut. With the sole exception of John F. 
     Kennedy, no Democratic president in history has ever proposed 
     a major tax cut. Democrats always want to hold on to every 
     last dollar of the taxpayers' money--no tax cut is ever as 
     valuable to them as the equivalent amount of government 
     spending.
       Even if they were convinced that a tax cut was justified, 
     it is always ``unfair'' to cut tax rates because that means 
     that those who pay the most taxes get a bigger tax cut. That 
     is why Democrats like tax credits, because they are tax 
     equivalent of government spending. Republicans, by contrast, 
     have historically supported tax rate reductions and increases 
     in tax exemptions, which allow people to keep more of their 
     own money.
       Republicans in Congress, therefore, committed a fatal error 
     when they made the $500 child credit the centerpiece of their 
     tax plan. It essentially is Democratic tax policy. As a 
     result, the differences between the two parties on the 
     central issue of taxation have become blurred.
       Moreover, the Republicans' obsession with balancing the 
     budget at all costs has blinded them to the need for a tax 
     cut vastly larger than the minuscule $122 billion over six 
     years that they have proposed in their latest budget. They 
     should be talking about a tax rate reduction of at least 15 
     percent across the board.

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