No new taxes

Definition

The phrase 'no new taxes' refers to a political pledge or promise made by leaders, particularly during campaigns, to not impose additional taxes on citizens. This commitment is often aimed at appealing to voters who may be concerned about their financial burden and can play a critical role in shaping economic policies and public opinion during challenging economic times.

5 Must Know Facts For Your Next Test

1. 'No new taxes' was famously used by President George H.W. Bush during his 1988 campaign, where he made it a cornerstone of his economic promises.
2. Despite his pledge, the need for budget balancing and deficit reduction led President Bush to agree to tax increases in 1990, which alienated many of his supporters.
3. This promise has been used by various political figures as a strategy to garner support, especially during times of economic uncertainty.
4. The failure to adhere to such pledges can significantly impact political careers, leading to loss of trust among voters and influencing future elections.
5. The concept ties closely to fiscal policy debates, where balancing the need for government revenue against public demand for lower taxes becomes contentious.

Review Questions

• How did President George H.W. Bush's 'no new taxes' pledge influence his 1988 campaign and subsequent presidency?
  • 'No new taxes' was a key slogan for President George H.W. Bush during his 1988 campaign that appealed to voters seeking stability in economic conditions. It helped him win the presidency by promising no additional financial burdens on citizens. However, when he later faced a budget crisis, the decision to raise taxes despite his pledge led to significant backlash from voters and ultimately contributed to his loss in the 1992 election.
• In what ways does the 'no new taxes' promise reflect broader economic concerns during times of recession?
  • 'No new taxes' reflects widespread voter anxiety about financial stability during economic downturns. Politicians often leverage this pledge as a means of reassurance to constituents who are worried about job security and rising living costs. When economic conditions worsen, calls for tax increases can create tension between fiscal responsibility and voter satisfaction, complicating political decisions.
• Evaluate the long-term implications of breaking a 'no new taxes' pledge on political trust and future governance.
  • 'No new taxes' pledges that are later broken can have lasting effects on political trust and governance. When politicians go back on such promises, it can lead to widespread disenchantment among their supporters, reducing voter turnout and engagement in future elections. This erosion of trust can create challenges for future leaders who may find it difficult to rally public support for necessary fiscal policies, thus impacting overall governance and economic strategy moving forward.

Related terms

Tax Reform: Changes to the tax code designed to improve efficiency, increase fairness, or boost revenue, often debated during times of economic hardship.

Economic Recession: A significant decline in economic activity across the economy lasting more than a few months, often characterized by falling GDP, rising unemployment, and reduced consumer spending.

Fiscal Policy:

The use of government spending and taxation to influence the economy, which can be affected by pledges like 'no new taxes' that guide legislative decisions.