Economic View: As Stimulus, Tax Cuts May Soon Go Awry: "By this reckoning, the Bush tax cuts will not do much to lift the economy. The $117 billion in fiscal 2003 gives birth to only $40 billion in effective stimulus. Much more of the cuts, perhaps every nickel, would have been spent if the money had been channeled to the states instead, to pay the salaries of teachers who were fired to balance budgets. The economy surged in the third quarter, but as Mr. Slemrod notes, 'the tax cuts were not a major part of that growth.'' "
- posted by geoff @ #