http://blogs.reuters.com/taxbreak/2012/09/12/which-tax-cuts-stimulate-the-economy/
"'Almost all of the stimulative effect of tax cuts,' Zidar found, 'results from tax cuts for the bottom 90%. A one percent of GDP tax cut for the bottom 90% results in 2.7 percentage points of GDP growth over a two-year period. The corresponding estimate for the top 10% is 0.13 percentage points and is insignificant statistically.'"
The guy has close ties to the Obama administration, so already this is obviously to be taken with a grain of salt. On pure basis of logic and methodology, however, what do you all make of this?
"'Almost all of the stimulative effect of tax cuts,' Zidar found, 'results from tax cuts for the bottom 90%. A one percent of GDP tax cut for the bottom 90% results in 2.7 percentage points of GDP growth over a two-year period. The corresponding estimate for the top 10% is 0.13 percentage points and is insignificant statistically.'"
The guy has close ties to the Obama administration, so already this is obviously to be taken with a grain of salt. On pure basis of logic and methodology, however, what do you all make of this?
