OBRA 93

OBRA 93 (Omnibus Budget Reconciliation Act of 1993)

The first legislation authorizing the FCC to auction spectrum. (Cingular)

The Omnibus Budget Reconciliation Act of 1993 (or OBRA-93) was passed by the 103rd United States Congress and signed into law by President Bill Clinton. It has also been referred to as the "Deficit Reduction Act of 1993."

Specifics

It created 36 percent and 39.6 rates for individuals, and created a 35 percent rate for corporations. The cap on Medicare taxes was repealed, transportation fuels taxes were hiked by 4.3 cents per gallon, and the taxable portion of Social Security benefits was raised.

The phase-out of the personal exemption and limit on itemized deductions were permanently extended.

Alternatives

Some alternatives to the bill included a proposal by Senator David Boren (D-OK), which among other things would have kept much of the tax increase on upper-income payers but would have eliminated all energy tax increases while also scaling back the Earned Income Tax Credit. It was endorsed by Bill Cohen (R-ME), Bennet Johnston (D-LA), and John Danforth (R-MO). Boren's proposal never passed committee.