President of the U.S., 1989-1993; Former Republican Rep. (TX)
Abandoned “Read my lips: No new taxes” pledge
In June 1990 Bush abandoned his “Read my lips. No new taxes” campaign pledge and acknowledged that new or increased taxes were necessary. Many Republican conservatives were critical of this shift, and his popularity ratings fell immediately. A compromise
deficit-reduction plan was killed by the House, with many Republicans in opposition. As a result, the government was almost forced to shut down for lack of money while a new budget proposal was drafted.
Source: Grolier Encyclopedia on-line, “The Presidency”
Dec 25, 2000
Demanded capital gains tax reduction; yielded to Congress
The president and Congress reached a compromise on a budget package that increased the marginal tax rate and phased out exemptions for high-income taxpayers. Despite his repeated demands for a reduction in the capital gains tax, Bush had to surrender on
this issue as well. His popularity among Republicans never fully recovered, and the compromise plan reduced the size of the deficit only marginally, despite Bush’s claim that it was the toughest deficit reduction package ever approved.
Source: Grolier Encyclopedia on-line, “The Presidency”
Dec 25, 2000
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