July 17, 2012
Obama V. Clinton On Taxes
Thanks to Dick Morris for putting this up. I think it makes a strong argument that President Obama is being deceptive when he talks about Clinton tax rates.
Dick Morris:President Obama is trying to re-write history when he says that his tax program is the same as Bill Clinton supported “when 23 million jobs were created.”Read the rest.
It’s not that way at all. Clinton’s 1993 increase of personal income taxes on the top bracket to 39.6% had a very negative effect on the economy. It was only after Clinton’s 1997 cut the capital gains tax – the opposite of what Obama proposes – that job growth really piled up.
...Clinton suddenly saw the error of his ways and began to hold down spending and push for a tax cut. In 1997, he and the Republican Congress combined to cut capital gains taxes from 28% (the rate to which Bush had increased it) to 20%. The result was electrifying! Real wage growth was 6.5% in the four years after the tax cut compared to minuscule wage growth of 0.8% over the four years after Clinton’s tax increase!