Tax Reform Act Of 1993

In the early 90s, when everyone started reducing their hair size from the 80s, America was also looking to reduce its federal deficit. Good ol' Bill (Clinton) and Congress passed the Tax Reform Act of 1993, which both increased taxes and reduced federal spending, in order to trim the deficit.

It added a 36% tax bracket, increased gas taxes, and added 10% for married couples making bank (bank being $250,000+). Corporate taxes were raised, too. If you hear “Revenue Reconciliation Act of 1993,” that’s the same thing.

While the deficit has gone up and down, it’s generally only getting bigger and bigger. America’s got I-O-U’s all over the place. Many economists have argued that Americans need to chill the f*** out, that it’s not the same as a person being in a lot of debt because of America’s standing in the global economy. We're big players. We can "afford" a lot of debt.

While America is still top dog for now, other countries (ones considered “developing” not too long ago) are catching up, which could make the deficit more problematic for the US. Only time will tell. How well do you speak Mandarin? Get on it.