1. Early in his administration, President Bill Clinton introduced a plan to balance the federal budget by
a. reducing government regulations.
b. raising taxes on the very wealthy.
c. increasing spending on defense.
d. imposing high protectionist tariffs.
b. raising taxes on the very wealthy.
The correct answer is b. raising taxes on the very wealthy.
President Bill Clinton introduced a plan to balance the federal budget by raising taxes on the very wealthy. This plan, known as the Omnibus Budget Reconciliation Act of 1993, included a combination of spending cuts and tax increases. The tax increases primarily targeted the top income brackets, with higher tax rates on high-income individuals and families. By increasing revenue through higher taxes, President Clinton aimed to reduce the federal budget deficit and eventually achieve a balanced budget.