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Compare the Omnibus Budget Reconciliation Act of 1993 with the Taxpayer Relief Act of...

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kristenmarieb... | Student, Grade 10 | Valedictorian

Posted June 23, 2013 at 3:07 AM via web

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Compare the Omnibus Budget Reconciliation Act of 1993 with the Taxpayer Relief Act of 1997.

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Kay Morse | College Teacher | (Level 1) Senior Educator

Posted June 28, 2013 at 10:55 PM (Answer #1)

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It is difficult to compare these as they are wholly different types of finanvial instruments and they do entirely different things. Cinton's Omnibus Budget Reconciliation Act of 1993 was his first Presidential budget proposal and was targeted at reducing the Federal deficit and halting the growing national debt. It included the Earned Income Credit for families earning below $30,000 annually. It also included stiffer taxes and the removal of some subsidies for corpoartations and a raise in the marginal tax for those earning more than $180,000 annually (especially targeted at those earning more than $250,000).

The Taxpayer Relief Act of 1997 provides for tax credits based on expenditures on higher education. It allows credits for parents of college/university students and it allows for credits returning adlut learners who are pursuing higher education. You can see that there is no similarity between these two acts except fort he one provision that each address a tax credit: The Hope and Lifetime Credits 1997 and the Earned Income Credit 1993. 

The Taxpayer Relief Act of 1997 provides educational tax incentives for eligible taxpayers. These benefits, called the American Opportunity (Hope) Credit and the Lifetime Learning Credit, allow taxpayers to reduce their federal income tax based upon qualified tuition and fees paid...

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