Fiscal policy — Federal Government spending and taxing programs was given the dominant role in economic stabilization efforts during the decade of the 1960’s. The income tax cut of 1964 was designed to accelerate time movement toward full employment after about three year’s of what was considered by some a rather slow rate of economic expansion following the recession of 1960-61. The income tax surcharge and a reduction in the rate of increase in Government spending were adopted in 1968 to curb the inflation of the last half of the 1960’s.