On Sunday, during an appearance on Meet The Press, MSNBCâs Lawrence OâDonnell confronted Newt Gingrich for falsely predicting in 1993 that the economy would suffer if then-President Bill Clinton raised marginal tax rates.
Republican are making a similar argument against President Obamaâs call to raise marginal tax rates on the richest Americans, even though the economy and jobs grew exponentially during the Clinton years when the top marginal tax rate was at 39.6 percent for the top income earners.
* * *
Indeed, in 1993 when President Bill Clinton raised taxes on the top income earners, Gingrich and the Republicans argued that the hikes would result in economic decline and result in huge deficits. They were proven wrong. The country experienced the âlongest period of economic growth in U.S. history, increased business investment, 23 million jobs added, and, of course, budget surpluses.â The same boom did not materialize after President George W. Bush enacted his tax cuts; the country experienced large deficits and the weakest job and income growth in the post-war era.
Source: Think Progress