Impact of tax cut debated

The Bush administration is promising big things for the package of $330 billion in tax cuts and rebates plus $20 billion in aid to states that Congress passed Friday. But independent experts disagree about how much the measure will jolt the economy.

>The most expensive provision of the plan

There they go again...the liberal notion that tax cuts are "costly". The only consequence is that congressmen need to cut the pork and exert spending restraint, for a change. Hardly, an "externality".

>But the measure approved by Congress, which cuts roughly two-thirds of personal taxes on dividends and a quarter of taxes on capital gains, has not exactly sent the market through the roof.

Tax cuts on dividends will not have instantaneous impact on the stock market and for this professor to suggest so implies he is either dangerously unqualified to teach economics or he knows better but is lying anyhow. Oftentimes, dividend yields are reinvested through DRIP programs- that will stimulate the market, but I emphasize Over Time. Once again, we must tell our liberal friends "Stop whining 'are we there yet?'. Adults know that there is no silver bullet. The outside lags of these economic prescriptions will take months, not days."

>Leamer also pointed out that most of the rebate checks issued as part of the 2001 tax cuts appear to have been saved rather than spent.

Savings means investments. Perhaps this sheltered academic doesn't realize that's what the bank does with your savings. I'm assuming he knows better and is simply trying to manipulate the liberal faithful that cling to the NYT's talking points.

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