CBPP Statement: Robert Greenstein, Executive Director, on the President's Economic Stimulus Plan
Publication Date: January 2008
Author(s): Robert Greenstein
Special Collection: John D. and Catherine T. MacArthur Foundation
Keywords: Tax code; Economic projections; Income diversity; Economic inequality
The centerpiece of the President’s new stimulus plan — a rebate provided by temporarily eliminating the 10 percent income tax bracket — fails crucial tests for providing the most effective stimulus, because it is not targeted on the tens of millions of families most likely to spend that rebate. In so doing, the plan flouts the advice offered last week by Federal Reserve chair Ben Bernanke. The plan also includes a business tax component that, at best, would provide modest stimulus.