The 1986 Tax Reform Act increased the maximum tax rate on capital gains income from 20 percent to 28 percent. This 40 percent tax hike has reduced government revenues, discouraged entrepreneurship and caused many investors to hold on to assets they would prefer to sell.
The Freedom and Fairness Restoration Act would scrap virtually all current deductions, credits, exclusions and exemptions, as well as the five current tax brackets. In their place, it would establish a single 17 percent tax rate on a much broader tax base.
The government of California would pay for most health care through higher taxes, requiring the state's entire health care system to be remade by state government and micromanaged by a new, all-powerful state health commissioner.
By 1997, every major economic indicator will be worse than it would have been had Bill Clinton done nothing. Unemployment will be higher, inflation will be higher and real economic growth will be lower.
Everyone from Ronald Reagan to Bill Clinton seems to agree. Our welfare system is a disaster. It's in desperate need of reform.