Statement on Proposed Tax Increases

Billions in new taxes—this is how the Democrats on the Senate Finance and the House Ways and Means Committees now propose to meet the 1988 Gramm-Rudman-Hollings deficit reduction targets. With Republicans on both panels not participating in the drafting sessions, the Democrats on the Senate Finance Committee proposed a tax hike of approximately $7.6 billion, with a promise of more to come. Democrats on the House Ways and Means Committee proposed a tax hike of $12 billion—$12 billion in additional taxes to be laid upon the backs of the American people.

If there were a legitimate need for these taxes, I would be less angry, but these tax hikes would only cover utterly unwarranted domestic appropriations bills totaling some $15.6 billion more than our budget request and $5.3 billion more than last year.

Simple prudence, a simple sense of responsibility, would make it possible to meet the deficit reduction targets with no new taxes. I look forward to working in this spirit with many in Congress—I believe the majority—who join me in rejecting new taxes. And let me repeat that if reason should fail, if Congress should actually pass a tax hike, my answer will be simply this: veto.

This Democratic tax hike is an exercise in fiscal irresponsibility. It's a breach of faith with the American people. It is unwise. It is uncalled for. It will not be tolerated by me or the American people.