Concerning the current debate on the economic stimulus package, I disagree that tax cuts will go far to help us solve our problems. However, I do think that if Americans think about the additional money in their pockets, we can actually have an impact on the efficacy of the tax relief. If I see $800 more this year than I would have otherwise, what can I do with that $800 that will help the economy? If I spend it on merchandise, it will probably help empty a warehouse somewhere. Will it put someone to work? I don’t know. What if I spend the money on services, such as lawn care or vehicle maintenance or having a college student paint my fence? The money goes into the pockets of others, who will in turn buy services or merchandise. To my mind, this method of spending my tax windfall will have more impact on the economy than merely buying goods.
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