Omnibus Budget Reconciliation Act of 1993

Omnibus Budget Reconciliation Act of 1993

The Omnibus Budget Reconciliation Act of 1993 (or OBRA-93[1]) was federal law that was enacted by the 103rd United States Congress and signed into law by President Bill Clinton. It has also been referred to, unofficially, as the Deficit Reduction Act of 1993. Part XIII, which dealt with taxes, is also called the Revenue Reconciliation Act of 1993.



  • It created 36 percent and 39.6 income tax rates for individuals in the top 1.2% of the wage earners.[2]
  • It created a 35 percent income tax rate for corporations.
  • The cap on Medicare taxes was repealed.
  • Transportation fuels taxes were raised by 4.3 cents per gallon.
  • The taxable portion of Social Security benefits was raised.
  • The phase-out of the personal exemption and limit on itemized deductions were permanently extended.
  • Part IV Section 14131: Expansion of the Earned Income Tax Credit and added inflation adjustments


Some alternatives to the bill included a proposal by Senator David Boren (D-OK), which among other things would have kept much of the tax increase on upper-income payers but would have eliminated all energy tax increases while also scaling back the Earned Income Tax Credit. It was endorsed by Bill Cohen (R-ME), Bennett Johnston (D-LA), and John Danforth (R-MO). Boren's proposal never passed committee.

Another proposal was offered in the House of Representatives by John Kasich (R-OH). He sponsored an amendment that would have reduced the deficit by cutting $355 billion in spending with $129 billion of the cuts coming from entitlement programs (the actual bill cut entitlement spending by only $42 billion). The amendment would have eliminated any tax increases. The amendment failed by a 138-295 vote with many Republicans voting against the amendment and only six Democrats voting in favor of the amendment.

Legislative history

Ultimately every Republican in Congress voted against the bill, as did a number of Democrats. Vice President Al Gore broke a tie in the Senate on both the Senate bill and the conference report. The House bill passed 219-213.[1] The House passed the conference report on Thursday, August 5, 1993, by a vote of 218 to 216 (217 Democrats and 1 independent (Sanders (VT-I)) voting in favor; 41 Democrats and 175 Republicans voting against), and the Senate passed the conference report on the last day before their month's vacation, on Friday, August 6, 1993, by a vote of 51 to 50 (50 Democrats plus Vice President Gore voting in favor, 6 Democrats (Lautenberg (D-NJ), Bryan (D-NV), Nunn (D-GA), Johnston (D-LA), Boren (D-OK), and Shelby (D-AL) now (R-AL)) and 44 Republicans voting against). President Clinton signed the bill on August 10, 1993.


By the end of President Clinton's term, there was a budget surplus (with the help of borrowed funds from the Social Security and Medicare accounts).[3]


External links

Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Omnibus Budget Reconciliation Act of 1990 — The Omnibus Budget Reconciliation Act of 1990 (or OBRA 90, Pub.L. 101 508, 104 Stat. 1388, enacted November 5, 1990) is a United States statute enacted pursuant to the budget reconciliation process to reduce the United States… …   Wikipedia

  • Consolidated Omnibus Budget Reconciliation Act of 1985 — This article is about the US medical insurance law. For other uses, see Cobra (disambiguation). The Consolidated Omnibus Budget Reconciliation Act of 1985 (or COBRA) is a law passed by the U.S. Congress on a reconciliation basis and signed by… …   Wikipedia

  • Reconciliation (U.S. Congress) — Reconciliation is a legislative process of the United States Senate intended to allow a contentious budget bill to be considered without being subject to filibuster. Reconciliation also applies in the United States House of Representatives, but… …   Wikipedia

  • Reconciliation-Verfahren — Das Reconciliation Verfahren ist ein Gesetzgebungsprozess im Senat der Vereinigten Staaten. Es wurde 1974 eingeführt, um ein Gesetzgebungsverfahren zu schaffen, in dem Filibuster nicht möglich sind. Der Name Reconciliation (engl. für… …   Deutsch Wikipedia

  • Deficit Reduction Act — may refer to various US legislation, including: Gramm Rudman Hollings Deficit Reduction Act Omnibus Budget Reconciliation Act of 1993 Deficit Reduction Act of 2005 This disambiguation page lists articles associated with the same title. If an …   Wikipedia

  • Emergency Medical Treatment and Active Labor Act — The Emergency Medical Treatment and Active Labor Act (usc|42|1395dd, EMTALA) is a United States Act of Congress passed in 1986 as part of the Consolidated Omnibus Budget Reconciliation Act. It requires hospitals and ambulance services to provide… …   Wikipedia

  • Presidency of Bill Clinton — 42nd President of the United States In office January 20, 1993 – January 20, 2001 Vice President Albert Gore, Jr …   Wikipedia

  • List of United States federal legislation — NoTOC This is a partial list of notable United States federal legislation, in chronological order. At the federal level in the United States, legislation (a.k.a. statutes or statutory law ) consists exclusively of Acts passed by the Congress of… …   Wikipedia

  • Dan Rostenkowski — Member of the U.S. House of Representatives from Illinois s 8th, 5th district In office January 3, 1959 – January 3, 1995 Preceded by …   Wikipedia

  • List of Social Security legislation (United States) — * 1935 Social Security Act, USPL|74|271 * 1939 Social Security Amendments of 1939, USPL|76|379 * 1942 Revenue Act of 1942, USPL|77|753 * 1943 USPL|78|211 * 1943 Revenue Act of 1943, USPL|78|235 * 1945 Federal Insurance Contributions Act,… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.