Zsolt Becsi Economist Federal Reserve Bank of Dallas The Long (and Short) on Taxation and Expenditure Policies

of the central issues in the 1992 presidential campaign was how best to promote economic growth. Because much of the growth debate concerned fiscal policy, taxation and expenditure plans came under intense public scrutiny. At issue were both the level of taxation and the proper mix of taxes. Similarly, voters were concerned with the composition as well as the level of government expenditures. While voter interest was high, the various programs put forth grew so detailed that their long- and short-run effects became difficult to evaluate and compare. What distinguished the 1992 campaign was a fiscally sober post–Cold War reassessment of the government’s economic priorities. All major candidate