Don’t be surprised if the “tax cuts” don’t do much to stimulate the economy. Not because tax cuts couldn’t work (who knows?), but because they’re tiny.
AP: The $500-per-worker credit for lower- and middle-income taxpayers that Obama outlined during his presidential campaign was scaled back to $400 during bargaining by the Democratic-controlled Congress and White House. Couples would receive $800 instead of $1,000. Over two years, that move would pump about $25 billion less into the economy than had been previously planned.
Officials estimated it would mean about $13 a week more in people’s paychecks when withholding tables are adjusted in late spring.
So what are you going to buy with that?