William Jefferson Clinton Memorial Library
We'd like to welcome you to the
Clinton Library -- dedicated to preserving the true
legacy of the 42nd President of the United States.
promised as President that his would be the "most ethical administration in the
history of the country. As you explore the pages of this website, you can
decide for yourself whether he lived up to that promise
Bill Clinton and Deficit
Bill Clinton claimed the deficit was
reduced more than since the Civil War and that his balanced budget would
protect Medicare, Medicaid, education and the environment.
On the surface it might appear he reduced the deficit, but the
problem was the deceptive way Clinton accomplished this "sleight of hand" deficit reduction. It's called
"cooking the books."
You see, the government keeps two sets of books...
One set showed the rosy picture Clinton wanted to paint for the American
public. The other set showed the actual mess that really existed for our
national debt and deficit reduction. What President Clinton failed to say was
his deficit-reduction package would run up
almost 1$ trillion in federal debt. This is because the reported
deficit does not include monies "borrowed" from trust funds. This despicable
gimmick used by the White House and Congress to cover up the huge federal
budget deficit was the looting of the Social Security
Trust Fund, Medicaid, Civil Service and military retirements funds. This
money may very well not be available to many of us when we grow old.
for protecting Social Security, Medicare and Medicaid, he robbed those coffers to make his deficit appear lower.
To make the deficit "appear" lower, the Clinton administration "borrowed" from
the Social Security Trust Fund, and borrowed big. The fund dried up years and
years ago. Now they borrow directly from your FICA payments to make the deficit
appear lower. Futhermore, Clinton dipped into the Federal Employees Retirement
System (FERS) to help reduce the deficit.
Hillary Clinton continues to repeat the lie in her bid for
president, frequently noting that her husband left the White House with the
nation enjoying record budget surpluses that Bush has turned into record
If you used the same bogus math to do your taxes that
the government uses to spend your taxes, you'd go to jail. If private sector
trust funds were handled this way, those responsible would be behind bars.
When will we hold the government just as accountable in spending our
taxes as they hold us in paying our taxes? This lying has to stop. The budget
is NOT balanced, and saying otherwise is both irresponsible and
While his numbers may show a net deficit reduction of
$514 billion it adds $936.5 billion to the gross
national debt and the debt continues to grow to this day. While Bill
Clinton was president, the gross federal debt went up from $4.1 trillion to
more than $5 trillion. At that rate, Clinton stacked up more debt in one term
than either of President Reagan's administrations.
Where Does Your Tax Money Go?
In 1984, The Grace
Commission Report was presented to Congress, explaining that one-third of all
income taxes is consumed by waste and inefficiency in the Federal Government,
and another one-third escapes collection due to the underground economy. With
two-thirds of everyone's personal income taxes wasted or not collected, 100
percent of what is collected is absorbed solely by interest on the Federal debt
and by Federal Government contributions to transfer payments. In other
words, all individual income tax revenues are gone before one nickel is spent
on the services which taxpayers expect from their Government.
It is the debt that we are paying interest on, not the
deficit. In 1980 it took 12% of the entire government's income
to service its debt. Today, it requires more than 18%, and that percentage is
Clinton also conveniently failed to tell the American people that he financed
his deficit reduction by refinancing long-term Federal Debt Securities with
short-term securities. If interest rates are higher when those securities
mature, both the deficit and budget will skyrocket and leave our children with
economic problems we can't imagine.
Clinton shifted the burden of his
so-called deficit reduction from his Administration to that of a later
President. The CBO reported Clinton's 10-year "balanced budget plan" would
leave a $209 billion deficit in 2005. And, nearly two-thirds of the
spending cuts in his budget was postponed until the last two years of his seven
year plan -- long after he was gone from office.