In 1992, individuals paid 12.4 percent of their income in taxes other than those for Social Security. This figure has risen every year since to a current level of 15.4 percent so far in 1998. In September, the latest month available, the figure was 15.6 percent. Thus taxes have risen by three percentage points of personal income. Eventually, this will translate into fewer jobs, lower productivity and less income for all Americans.
Budget deficits subtract from national saving while surpluses add to it.
But when deficits are reduced primarily by raising taxes, as Clinton has done, the economic payoff may not emerge because saving falls by more than the deficit. Bruce Bartlett, senior fellow, National Center for Policy Analysis , November 16, 1998.