Taxes and Economics - The Bush Experience

During the 1988 Presidential Campaign, George H. W. Bush pledged:

"Read my lips: no new taxes."

He reversed on his pledge and raised taxes in 1990 with the Omnibus Budget Reconciliation Act of 1990 (OBRA-90).

The Results:

GDP Growth Rate

1990           1.9%   (Well below Average)

1991           -0.1%

 In 1992, the Clinton Campaign jumped on the weak economy as one of worst of all time.  It really wasn’t, but the die was cast. 

Bill Clinton’s campaign manager, Jim Carville, coined the slogan:

“It’s the Economy, Stupid.”   

An enduring caution to anyone in politics.

The Outcome:

Bush lost his 1992 bid for re-election due to the recession and the effect of Ross Perot as a third-party candidate.

Vote Percentage in 1992:

Clinton     43%

Bush         37%

Perot         19%

Perot had the best showing of a third-party candidate in modern history.

Clinton took office with only 43% of the popular vote.

Despite his personal foibles that drove Republicans crazy, Clinton had a successful two terms as President with a strong economy and the last balanced Federal budgets since then.

Lessons Learned

Tax Increases do not help the Economy or cure Budget Deficits.

Economic Growth and limited Federal Spending will produce a great economy for all Citizens.

David Hollaender                                                        Copyright

Cogport.com                                                                  May 30, 2025