President George W.Bush billed his $1.35 trillion tax cut in 2001 as both an immediate economic stimulus to fight the current recession as well as a long-term boost to economic growth.

Question

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The tax cut resulted in a rapid and expanding government deficit. Despite the long-term growth argument, the immediate impact of the tax cut was a decrease in government revenue, which contributed to a large government deficit. The budget was projected to shift from a surplus of $128 billion in 2001 to a deficit of $157 billion in 2002.