Quote:
Originally Posted by FLAMESRULE
Not sure I agree with focusing on the tax cuts for low income earners (not that its a bad thing!). But in reality how much stimulus can it provide?? If we want to stimulate "spending" the middle and high income earners need to be the target of any tax cut. We naturally have more disposable income and would likely spend it a lot more than a low income earner scrapping by.
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Well... I'd suggest that if you're in the high income bracket, you're probably already buying consumer items as you see fit. A few extra hundred dollars to the person in the highest bracket probably won't change their spending habits much.
If you're a low-middle income earner, an extra hundred dollars here or there may be your whole consumer item budget for that time period... a few extra bucks in their hands is likely to be spent directly in the economy rather than saved or used to pay down debt.