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tax increases on Social Security benefits
=== Taxes===
=== Taxes===
[[Image:ClintonPresident.jpg|right|thumb|275px|Bill Clinton's Presidential cabinet]] Clinton's first priority while coming into office was the economy. In an attempt to lower [[interest rates]] Clinton sent Congress a deficit reduction plan in early 1993. However, Clinton's problem was that about half of government money goes to entitlement programs such as [[social security]] and [[medicare]]. Refusing to cut domestic spending, he increased taxes on gasoline, heating oil, and natural gas, breaking his campaign pledge not to raise tax rates. On Aug. 10, 1993, the largest tax increase in history was signed into law, raising taxes by almost $280 billion over five years.<ref>J.D. Foster, Ph.D. [http://www.heritage.org/research/reports/2008/03/tax-cuts-not-the-clinton-tax-hike-produced-the-1990s-boom#_ftn1 Tax Cuts, Not the Clinton Tax Hike, Produced the 1990s Boom], ''The Heritage Foundation'', March 4, 2008.</ref> Instead of middle-class tax relief, President Clinton chose to include in his $241 billion tax plan higher federal gasoline taxes, tax hikes on Social Security recipients, and steep income tax hikes on small business owners.<ref> ''The President's Forgotten Middle Class,'' Joint Economic Committee, Majority Staff, 3/22/96.</ref> Conservatives blocked some proposals, such a new $71 billion [[BTU energy tax]] that would have cost the typical family nearly $500 per year.
[[Image:ClintonPresident.jpg|right|thumb|275px|Bill Clinton's Presidential cabinet]] Clinton's first priority while coming into office was the economy. In an attempt to lower [[interest rates]] Clinton sent Congress a deficit reduction plan in early 1993. However, Clinton's problem was that about half of government money goes to entitlement programs such as [[social security]] and [[medicare]]. Refusing to cut domestic spending, he increased taxes on gasoline, heating oil, and natural gas, breaking his campaign pledge not to raise tax rates. On Aug. 10, 1993, the largest tax increase in history was signed into law, raising taxes by almost $280 billion over five years.<ref>J.D. Foster, Ph.D. [http://www.heritage.org/research/reports/2008/03/tax-cuts-not-the-clinton-tax-hike-produced-the-1990s-boom#_ftn1 Tax Cuts, Not the Clinton Tax Hike, Produced the 1990s Boom], ''The Heritage Foundation'', March 4, 2008.</ref> Instead of middle-class tax relief, President Clinton chose to include in his $241 billion tax plan higher federal gasoline taxes, tax hikes on Social Security recipients, and steep income tax hikes on small business owners.<ref> ''The President's Forgotten Middle Class,'' Joint Economic Committee, Majority Staff, 3/22/96.</ref> Conservatives blocked some proposals, such a new $71 billion [[BTU energy tax]] that would have cost the typical family nearly $500 per year.
====Tax increases on Social Security benefits====
In 1993 President Clinton sought to increase taxes on [[Social Security]] benefits of the elderly and disabled.<ref>http://www.house.gov/house/Contract/seniorsd.txt</ref> The final version of the bill passed by the [[Democrat]]ically controlled Congress increased taxes on beneficiaries from the first 50% to 85%<ref>http://web.archive.org/web/20040408115747/www.ssa.gov/OACT/HOP/hopi.htm</ref> of benefits (or "annuity payments" as they were originally called). [[Vice President]] [[Al Gore]] cast the deciding tie-breaker vote in the Senate to make the tax increase law. The Clinton-Gore tax increase on Social Security benefits imposed a 70% [[income tax]] rate on a retired couple making as little as $22,000 per year.<ref>[http://books.google.com/books?id=vLg4iJR0J9kC&pg=PA16593&lpg=PA16593&dq=Vice+President+Gore+cast+the+tie-breaking+vote%2Bsocial+security&source=bl&ots=-ImIDX6fHa&sig=ttWVUNAIVsLQoEg1ZhCntHB_02Y&hl=en&ei=dobVTMr9HoOglAe0iuX9CA&sa=X&oi=book_result&ct=result&resnum=2&ved=0CBYQ6AEwAQ#v=onepage&q=Vice%20President%20Gore%20cast%20the%20tie-breaking%20vote%2Bsocial%20security&f=false Congressional Record, Comments by Rep. Christopher Cox,] July 27, 2000.</ref>
=== Health Care Reform ===
=== Health Care Reform ===
It was during this scandal that Clinton famously stated: "It depends on what the meaning of the word 'is' is".<ref>http://news.bbc.co.uk/onthisday/hi/dates/stories/september/21/newsid_2525000/2525339.stm</ref>
It was during this scandal that Clinton famously stated: "It depends on what the meaning of the word 'is' is".<ref>http://news.bbc.co.uk/onthisday/hi/dates/stories/september/21/newsid_2525000/2525339.stm</ref>
[[File:Dow10000.JPG|thumb|290px|Performance of the Dow Jones Industrial Average since Clinton asked to privatize Social Security; Clinton made his proposal at or near the top of the investment cycle when stocks were overvalued, prior to the crash.]]
[[File:Dow10000.JPG|thumb|290px|Performance of the Dow Jones Industrial Average since Clinton asked to privatize Social Security; Clinton made his proposal at or near the top of the investment cycle when stocks were overvalued, prior to the crash.]]
=== Privatize Social Security ===
=== Proposal to privatize Social Security ===
In 1999 President Clinton proposed investing the Social Security Trust Fund in what some might consider "risky" assets in the [[stock market]] and [[bond]]s. The stock market then was in the late stages of a bull market cycle with stock prices and indexes overvalued. Clinton told a joint meeting fo the U.S. House of Representatives and Senate,
In 1999 President Clinton proposed investing the Social Security Trust Fund in what some might consider "risky" assets in the [[stock market]] and [[bond]]s. The stock market then was in the late stages of a bull market cycle with stock prices and indexes overvalued. Clinton told a joint meeting fo the U.S. House of Representatives and Senate,