Running the country more like a business.
When Clinton took office as president in 1993, the government needed to balance its budget, just as a business would do. Under the Clinton administration, tax rates were raised to increase revenue. The Omnibus Budget Reconciliation Act of 1993 (also known as the Deficit Reduction Act) raised the top income tax rate from 28 percent to 36 percent persons with income above $115,000, and to 39.6 percent for persons with income above $250,000. It increased the corporate income tax rates and ended some corporate subsidies.
Government spending was cut also by reforming welfare. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 pushed for welfare recipients to seek employment, and limited the total time they could receive benefits to five years.
Clinton also increased the business marketplace for the United States by signing the North American Free Trade Agreement, eliminating tariffs between the United States, Canada, and Mexico.
Ultimately, Clinton's economic policies paid off. More than 22 million new jobs were created during his presidency. Unemployment went down, from 7.5 percent to 4.0 percent. The government's budget deficit dropped from $290 billion to a budget surplus of $128 billion.
