Tax cuts for the well to do - who are not borrowing constrained - will likely have NO aggregate demand stimulus effect as I have often argued (aka either Life Cycle or Ricardian Equivalence) models so if this is what the Republican Party have in mind - it is based on hogwash economics. Tax cuts for the working poor, however, may be a good idea as these households will consume much of the tax cut. I think this is what Obama has in mind. If your argument is that we should go with the kind of tax cuts Obama campaigned on - I agree. But tax cuts for Bill Gates is just stupid from a Keynesian point of view.
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