Saturday, December 1, 2018

How George H.W. Bush's broken 'no new taxes' pledge changed American politics and policy forever

  1. Republicans aren't willing to sign on to any deal that would allow Democrats to pocket tax increases while deferring spending cuts, and Democrats see no reason to sacrifice their domestic priorities to a Republican Party that's unwilling to increase taxes.
  2. Policywise, the aftermath of the 1990 budget deal also convinced Republicans that if they trade tax hikes in exchange for promised spending cuts, that the tax increases will go into effect, but the spending cuts will never be realized.
  3. When Republicans took control of the House in 2011 committed (at the time) to debt reduction, there was no support among Republicans for a "grand bargain" with President Obama that would involve any increases to taxes.
  4. When Republicans retook Congress in 1994, the incoming freshman class, whose political attitudes were shaped by the betrayal of 1990, entered Congress with a much more uncompromising attitude toward Democrats, which led to high-stakes budget standoffs and ultimately several government shutdowns.
  5. But then, in 1990, under pressure to strike a budget deal with the Democratic-controlled Congress, Bush relented and agreed to hike taxes.
  6. Americans for Tax Reform, the group led by Norquist, asks Republican candidates at all levels of government to sign a pledge opposing any increases in marginal tax rates or eliminations of deductions unless offset by equal reductions in tax rates.
  7. In the wake of the election, conservatives such as Rush Limbaugh and anti-tax crusader Grover Norquist made the case that the broken tax pledge cost Bush the presidency.


https://www.washingtonexaminer.com/opinion/how-george-h-w-bushs-broken-no-new-taxes-pledge-changed-american-politics-and-policy-forever

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