A Smarter Stimulus

Cutting taxes is usually a surefire political winner. Yet Barack Obama’s plan to include more than a hundred billion dollars in individual tax rebates in his stimulus package has earned him criticism from both ends of the political spectrum. Critics in his own party think the rebate, which Obama wants to distribute by reducing people’s withholding payments, will be too small to make a difference—the equivalent of an extra forty dollars or so a month. ... Full Story »

Posted by Leo Romero
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Posted by: Posted by Leo Romero - Jan 24, 2009 - 11:58 PM PST
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Edited by: Derek Hawkins - Jan 26, 2009 - 12:02 PM PST
Derek Hawkins
3.9
by Derek Hawkins - Jan. 26, 2009

This opinion reads more like a news analysis, and for the better. It looks at how past tax rebates have worked (and not just in the United States) and where they haven't, using the theories of some prominent economists to help explain why. The author argues that because Obama's plan is piecemeal it will help people in weather the recession, even if it doesn't boost the economy altogether.

A more compelling explanation for why rebates haven’t worked very well is that they have been handed out as lump sums. You might think that handing people a big chunk of ... More »

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Fabrice Florin
4.1
by Fabrice Florin - Jan. 26, 2009

Excellent column about the psychology of tax rebates by 'Wisdom of the Crowds' author James Surowiecki, a staff writer at The New Yorker. The author addresses recent criticisms that Obama's proposed stimulus package might have negligible effect, because more people are likely to save the rebate than spend it.

It was helpful for me to understand why people seem more likely to spend a tax refund when it is handed out in monthly installments than in one lump payment.

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Patricia L'Herrou
3.7
by Patricia L'Herrou - Jan. 26, 2009

a clear description of sociological reasons why the framing of the tax refund/rebate of the obama plan may work well right now to stimulate the economy. discusses past attempts, similar and different and their outcomes. i with more had been included on the studies/persons who have formulated the ideas on which he bases this

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Peter L. Combs
3.9
by Peter L. Combs - Jan. 26, 2009

An authoratative piece on the theorys and work of "Mr. Nudge". A clearly presented look at the Libertarian Thaler's genius. Good analysis, content and examination of spending habits..

Unless the Pay Roll cuts described include FICA, these payroll deductions are, for 90%, of the workforce simply early refunds of their current annual refund from thier jobs. Most working families pay ONLY FICA and State Taxes. Still better than nothing.

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Leo Romero
3.0
by Leo Romero - Jan. 24, 2009
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Kenneth Sibbett
3.1
by Kenneth Sibbett - Jan. 26, 2009

while this is a well written and researched article, the premise is all wrong. Poor people, which i am one, spend their money on a first come, first go method. If I have an unusually high light bill because of a hard winter, it goes there. On the last rebate, if people don't remember. gas was 4.00$ a gallon. That end itself took most of the rebate, along with shopping with coupons at the local grocery store. Food still hasn't come down, even with the lower transportation costs. You can't formulate who will spend what on what because everyone has a different story.Believe me, poor people want a big rebate where they can at least put a down payment on a used car.

Last year I paid my electric bill, my water bill, my insurance bill, my car payment, and bought 98.00$ in grocery's.Party on, Garth

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