Tuesday, January 27, 2009
Citizens for Tax Justice has published Tax Cuts in House Democratic Stimulus Plan Better Targeted Than Those of House Republican Plan; National and State-by-State Estimates of Effects of Tax Cut Proposals in Appendix. Here is the Conclusion:
Lawmakers who are serious about reviving the economy should recognize that tax cuts will be less effective than government spending. There is no certainty that tax cuts will ever result in the sort of immediate spending that economists agree is needed to boost demand for goods and services. But to the extent that Congress feels compelled to cut taxes, the sort of tax proposals included in the House Democrats’ bill (H.R. 598) promise to be far more effective than those included in the Republican bill (H.R. 470). This is because the Democrats’ plan would immediately put money in the hands of those who are most likely spend it quickly — low- and middle-income working families.