challenging to keep his promise. The Bush campaign's figures had been based on the assumption that the high rates of economic growth in the late 1980s would continue throughout his time in office. Instead, a recession began. By 1990, rising budget deficits, fueled by a growth in mandatory spending and a declining economy, began to greatly increase the federal deficit. The Gramm–Rudman–Hollings Balanced Budget Act mandated that the deficit be reduced, or else mandatory cuts unpalatable to both Republicans and Democrats would be made. Reducing this deficit was a difficult task. New cuts of any substance would have to come either from government programs, such as Medicare or Social Security, or from defense. The budget for the next fiscal year proved far more difficult. Bush initially presented Congress a proposed budget containing steep spending cuts and no new taxes, but congressional Democrats dismissed this out of hand. Negotiations began, but it was clear little progress could be made without a compromise on taxes. Richard Darman, who had been appointed head of the Office of Management and Budget, and White House Chief of Staff John H. Sununu both felt such a compromise was necessary. Other prominent Republicans had also come out in favor of a tax increase, including Gerald Ford, Paul O'Neill, and Lamar Alexander. At the end of June, Bush released a statement stating that "it is clear to me that both the size of the deficit problem and the need for a package that can be enacted require all of the following: entitlement and mandatory program reform, tax revenue increases, growth incentives, discretionary spending reductions, orderly reductions in defense expenditures, and budget process reform." The key element was the reference to "tax revenue increases" now being up for negotiation. An immediate furor followed the release. The headline of the New York Post the next day read "Read my Lips: I Lied." Initially some argued that "tax revenue increases" did not necessarily mean tax increases. For example, he could mean that the government could work to increase taxable income. However, Bush soon confirmed that tax increases were on the table. Some of the most enraged over the change in policy were other Republicans, including House Whip Newt Gingrich, the Senate leadership, and Vice President Dan Quayle. They felt Bush had destroyed the Republicans' most potent election plank for years to come. That the Republican leadership was not consulted before Bush