The federal budget surpluses experienced at the turn of the twenty-first century disappeared largely because of

Question

Quizplus · Accepted Answer

All of the above contributed to the return of federal budget deficits. The multi-year tax cuts in 2001 and 2003 reduced revenue, while federal spending on homeland security increased. Additionally, the war and reconstruction of Iraq added to federal spending. The recession of 2001 also reduced revenue and increased government spending on social welfare programs. All of these factors combined led to the disappearance of federal budget surpluses and the return of federal budget deficits.

The Federal Budget Surpluses Experienced at the Turn of the Twenty-First