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- Embed this notice> The last time we had a surplus is because Bush Sr raised taxes right as the dot-com era took off.
The dot com era was not for another 10 years LOL
Reagan cut top tax rate from 50% to 28%
Bush Sr raised it to 31%
Clinton raised it to 38.6%
There's no way that Bush Sr gets any credit for the surplus. Absurd.
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On November 5, 1990, Bush signed the Omnibus Budget Reconciliation Act of 1990. Among other provisions, this raised multiple taxes.
The law increased the maximum individual income tax rate from 28 percent to 31 percent, and raised the individual alternative minimum tax rate from 21 percent to 24 percent. It also increased other taxes, including payroll and excise taxes, and limited itemized deductions for high-income individuals. However, it increased access to the earned income tax credit for low-income families, and limited the capital gains rate to 28 percent.