One should recognize the alternate projections which could be aroused by diversion of the Bush Tax Cuts elsewhere. Here is a pretty good stab at the wealthy end of the Bush Tax Cuts. There are a lot more uses for the tax revenues besides giving it to people who will not use it to promote the economy. It patently expresses that the low-End of the Income spectrum vitally needs the extra Cash to build their economic viability—something which makes up about 80% of the Population. There could have been additional data in the article with information on the fact that only about 18-20% of the Return, if given to the Wealthy, will actually be spent upon purchase of any economic Product–rather than financial instruments on which there is no economic return. This means that instead of an even split where almost all of the $500 would go to the purchase of economic Product; about $410 of that $500 will be transferred to commercial paper which does not generate even comparable economic activity.
This Post from James Hamilton immediately after the Leonhardt article on the economic site I utilize explains it all. None of the economic data indicates that there will be any increase in employment currently which would decrease the actual Unemployment rate–something far too great by any evaluation. The Leonhardt article explained How the current Bush Tax Cuts extended will never improve that employment, while indications exist that such current economic activity will decrease with the new year. The only buoyancy present at this time consisting of the Christmas Season. The Republican Congress may be voting to reinstate the Bush Tax Cuts while the economy is already in decline.
Here is a Post from Matt Yglesias that expresses the Opposing Side argument. The trouble is that it proposes equally flawed ideas. Still, Matt explains the argument is clear terms, with the positions of Liberals and Conservatives. The actual fact stands that We need higher Taxes, a freeze on social welfare spending, and establishment of Government-funded large-scale Work programs where no one can complain about reducing Spending once the projects are complete. The trouble remains the fact that it meets opposition from all Sides. lgl