Omnibus Budget Reconciliation Act of 1990

Omnibus Budget Reconciliation Act of 1990

Other short titles	Agricultural Reconciliation Act of 1990 Airport Noise and Capacity Act of 1990 Aviation Safety and Capacity Expansion Act of 1987 Budget Enforcement Act of 1990 Child Care and Development Block Grant Act of 1990 Coastal Zone Act Reauthorization Amendments of 1987 Computer Matching and Privacy Protection Amendments of 1990 FDIC Assessment Rate Act of 1990 Federal Aviation Administration Research, Engineering, and Development Authorization Act of 1990 Federal Credit Reform Act of 1990 Pollution Prevention Act of 1990 Portability of Benefits for Nonappropriated Fund Employees Act of 1990 Revenue Reconciliation Act of 1990 Student Loan Default Prevention Initiative Act of 1990
Long title	An Act to provide for reconciliation pursuant to section 4 of the concurrent resolution on the budget for fiscal year 1991.
Nicknames	Abandoned Mine Reclamation Act of 1990
Enacted by	the 101st United States Congress
Effective	November 5, 1990
Citations
Public law	101-508
Statutes at Large	104 Stat. 1388
Legislative history
Introduced in the House as H.R. 5835 by Leon Panetta (D–CA) on October 15, 1990 Committee consideration by House Budget Passed the House on October 16, 1990 (227-203 Roll call vote 475, via Clerk.House.gov) Passed the Senate on October 19, 1990 (54-46 Roll call vote 292, via Senate.gov, in lieu of S. 3209) Reported by the joint conference committee on October 27, 1990; agreed to by the House on October 27, 1990 (228-200 Roll call vote 528, via Clerk.House.gov) and by the Senate on October 27, 1990 (54-45 Roll call vote 326, via Senate.gov) Signed into law by President George H.W. Bush on November 5, 1990

The Omnibus Budget Reconciliation Act of 1990 (OBRA-90; Pub.L. 101–508, 104 Stat. 1388, enacted November 5, 1990) is a United States statute enacted pursuant to the budget reconciliation process to reduce the United States federal budget deficit. The Act included the Budget Enforcement Act of 1990 which established the "pay-as-you-go" or "PAYGO" process for discretionary spending and taxes.

The Act was signed into law by President George H. W. Bush on November 5, 1990, counter to his 1988 campaign promise not to raise taxes. This became an issue in the presidential election of 1992.

The Act increased individual income tax rates. The top statutory tax rate increased from 28% to 31%, and the individual alternative minimum tax rate increased from 21% to 24%. The capital gains rate was capped at 28%. The value of high income itemized deductions was limited: reduced by 3% times the extent to which AGI exceeds $100,000. It temporarily created the personal exemption phase out applicable to the range of taxable income between $150,000 and $275,000.

Itemized deductions were temporarily limited until 1995. The payroll tax rate increased. The cap on taxable wages for hospital insurance (Medicare) was raised from $53,400 to $125,000. Social security taxes to state and local employees was extended without other pension coverage. A supplemental 0.2% unemployment insurance surtax was imposed.

The act imposed a 30% excise tax on the amount of price over $30,000 for autos, $100,000 for boats, $250,000 for airplanes, and $10,000 for furs. It also increased motor fuels taxes by 5 cents per gallon, and increased taxes on tobacco and alcoholic beverages: by 8 cents per pack of cigarettes, by $1.00 per proof gallon of liquor; by 16 cents per six-pack of beer; and by 18 cents per bottle of table wine. It extended Airport and Airway trust fund taxes, increasing them by 25%, and permanently extended the 3% federal telephone excise tax on telephone service.

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