Saturday, May 13, 2017

A Negative Deficit Under Clinton

Deficit is different from from debt. Deficit is the yearly amount by which money spent is more than money received, whereas debt is the total sum of all the deficits.
http://www.usgovernmentspending.com/spending_chart_1990_2003USb_18s2li011mcn_G0f
The graph above shows the federal deficit each fiscal year before, during, and after Clinton's presidency. Although Clinton was sworn in in January 1993, the first full fiscal year of his presidency was the 2004 fiscal year (Oct. 1, 2003 - Sept. 30 2004). Even so, under Clinton, the deficit began to drop starting from the 1993 fiscal year up until 2001, when Bush was sworn in and the deficit ballooned. Clinton, a democrat, campaigned on the idea of lowering the federal deficit, and wasted no time in doing so once he was inaugurated.

In Clinton's first year, he pushed large tax increases that fell almost exclusively on upper-income taxpayers, the reasoning being that those who have benefited from the system established by the system of government owe more compensation to the program which allowed them to thrive. Many also accredit the budget surplus to the Social Security tax on payroll.

Keep in mind the government dues to the public were in no way subdued, but they were reduced even if only for a brief period.

Sources:
https://www.cbo.gov/publication/19906
https://www.cbo.gov/publication/19907
https://www.cbo.gov/publication/18477
https://www.thebalance.com/us-deficit-by-year-3306306
https://upload.wikimedia.org/wikipedia/commons/7/72/Combined--Control_of_the_U.S._House_of_Representatives_-_Control_of_the_U.S._Senate.png
https://usatoday30.usatoday.com/news/washington/2006-08-02-deficit-usat_x.htm
https://www.fiscal.treasury.gov/fsreports/rpt/finrep/fr/fr_index.htm

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