The Clinton Budget for FY 1994: Taking Aim At The Deficit

President Clinton's budget for FY 1994 takes a high-risk approach to deficit reduction. By calling for the largest peace-time tax increase in American history as the centerpiece of his five-year economic plan, Clinton invited the possibility of either an outright defeat, unwelcome compromise in Congress, or a "victory" that might severely impair the prospects for economic growth. His willingness to accept such risks may be taken as strong evidence that reducing the deficit was the new administration's top priority.