Somebody FREAKIN shoot me!!!!

[realcoray]

Originally Posted by bdahlg68

Saw or heard something that described the return on stimulus vs. return on tax cuts...... basically showed stimulus had a higher return even though it would cause an "entitlement" society. Has anyone else heard or seen an article like this??? Trying to find it....

I think the return on stimulus would be better simply because it's more direct. If you remember the original bush era stimulus where we all got checks in the mail the explicit goal was that you go out and spend that money. The last stimulus was slightly more abstract in that it was the government basically spending it, but with the same idea, that money in = jobs out, which in turn of course the government taxes their incomes netting some return.

The funny part about tax cuts to me, along with the discussion here about luxury boats is that rich people as a group aren't rich because they are buying boats all the time or really, spending all their money. Buying boats and ferraris in bulk is how rich people become poor people (see: Professional Athletes).

If you give me a tax cut, there certainly is a chance that I'd spend it, but there's a near equal chance that I'll do something that has 0 economic affect like putting it into my savings account. If I made twice as much, that wouldn't change and I can't imagine Greg for example getting a tax cut and then going and blowing it on stuff. On an absolute basis rich people spend more than poor people, but as a percentage, I'm going to say that poor people spend more, out of necessity or in some cases out of stupidity (aka, that's why they are poor).

That isn't me saying take from the rich savers to give to the poor spenders, but just saying that a 1$ tax cut for people even moderately successful people, is probably less in terms of trickle down than some people want to believe.