I somewhat agree with this article. The tax cut portion of the stimulus is actually noted by the Obama team to be less effective than other parts. In my mind, the tax cuts are mostly there to buy votes and effect an overall tax policy that is more conducive to democrat special interests
As for the overall discussion, yes taxes are a drag on productive behavior but that seems to be very inconsequential during a recession. The biggest discouragement to investment during a recession is the recession not taxation. Turns out that the high probability of losing money is more of a drag on investment than getting taxed.
So while I think the tax discussion is important for thinking about long term growth, it’s woefully inadequate to think of as a “stimulus” package. I mean just how many times can you reduce marginal rates before you end up like the Federal Reserve… stuck with a rate that can’t conceivably go any lower.
