Bang for the buck

The chief economist for Moody's Economy.com site has done an overview of the fiscal stimulus plan that came through the House.

I just thought I'd mention where he indicates that demand-side money does much more than tax cuts for boosting the GDP.

The ratio of dollars of GDP generated in a year to dollars spent:

Spending increases
Extending unemployment benefits--1.63
Temporary increase in food stamps--1.73
General aid to state governments--1.38
Increased infrastructure spending--1.59

Tax cuts

Non-refundable lump-sum tax rebate--1.01
Refundable lump-sum tax rebate--1.22

Temporary tax cuts
Payroll tax holiday--1.28
Across the board tax cut--1.03
Accelerated depreciation--0.25

Permanent tax cuts
Extend Alternative Minimum Tax patch--0.49
Make Bush tax cuts permanent--0.31
Make dividend and capital gains tax cuts permanent--0.38
Cut in corporate tax rate--0.30

The aid to states is particularly interesting because most states are barred from deficit spending.

Speaks volumes about the House Republicans tax-cut based stimulus plan