Tax incentives in the context of "Subsidy"

A tax deduction or benefit is an amount deducted from taxable income, usually based on expenses such as those incurred to produce additional income. Tax deductions are a form of tax incentives, along with exemptions and tax credits. The difference between deductions, exemptions, and credits is that deductions and exemptions both reduce taxable income, while credits reduce tax.

Bill Clinton served two tenures as governor of Arkansas. Elected in 1978, Clinton first served as governor for a single term from 1979 until 1981, losing his bid for re-election in 1980. After a two-year interregnum, Clinton returned to the governorship after winning the 1982 election. Clinton would be elected to five further terms (terms were extended from two years to four years beginning with the 1986 election), serving until mid-December 1992, when he resigned amid his transition into the U.S. presidency after having been elected president in the 1992 presidential election. Clinton was the second-longest serving governor in the state's history, after Orval Faubus.

Clinton's first governorship (1979–1981) saw him pursue many liberal policies. He had some successes, including successes with a rural healthcare reform effort by a taskforce that he had appointed his wife, Hillary, to lead. However, his term also saw the implementation of an unpopular motor vehicle tax. After Clinton returned to office for his second governorship in 1983, he was more centrist and was more selective as to what battles he pursued, zeroing in on particular priorities. One main priority was the state's economy, with Clinton providing tax incentives to businesses. Another priority was education, with Clinton and his wife, Hillary, overseeing the creation of significant education reforms. Other matters Clinton addressed included healthcare and lobbying reforms.