1. Economic Growth: The strong economic growth during the Clinton administration, including an increase in tax revenue, played a significant role in turning around the budget deficit.
2. Tax Increases: President Clinton implemented tax increases on higher-income individuals and corporations, which helped generate additional revenue for the government and reduce the budget deficit.
3. Spending Restraint: The Clinton administration also implemented spending cuts and restraint, particularly in discretionary spending, which helped reduce the budget deficit.
4. Balanced Budget Act of 1997: The Balanced Budget Act of 1997, passed with bipartisan support, included a combination of spending cuts and revenue-raising measures that helped eliminate the budget deficit and even generate a surplus in subsequent years.
5. Increased Social Security Revenues: The booming economy during the late 1990s led to an increase in payroll tax revenues for Social Security, which also helped improve the overall budget situation.
What factors during the Clinton administration turned the budget deficit around?
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