The 1990’s maintained the relatively low Marginal Tax Rates with slight increases by two Presidents. President George H. W. Bush signed the Omnibus Budget Reconciliation Act of 1990 (OBRA 1990) in 1990 raising the Top Marginal Tax Rate from 28% to 31% . In 1993, President Bill Clinton increased it further from 31% to 39.6% for high-income earners through the Omnibus Budget Reconciliation Act of 1993 (OBRA 1993), aiming to reduce the deficit and to increase fairness.
Significance:
- Gradual increases in the Marginal Tax Rates in both the OBRA 1990 and OBRA 1993 Acts from 28% to 39.6%
- The Bush tax rate increase came after he famously was quoted as “Read my lips. No new taxes.“
- AMT was increased to a top tier of 28%
- OBRA 1993 created a Top Marginal Tax Rate of 39.6% on Income over $250,000 ($553,000 in 2025)
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