If the Republicans really want to stimulate the economy, then why did they try so hard to reduce the items shown to be most stimulating, and increase those shown to be the least stimulating? Is the below data just plain inaccurate? What gives?
Should we consider the Congressional Research Service biased?
Source: http://assets.opencrs.com/rpts/R40104_20090227.pdf page 13
Table 1. Zandi’s Estimates of the Multiplier Effect for
Various Policy Proposals
Policy Proposal One-year change in real GDP for a given policy change per dollar
| Tax Provisions | |
| Non-refundable rebate | 1.02 |
| Refundable rebate | 1.26 |
| Payroll tax holiday | 1.29 |
| Across the board tax cut | 1.03 |
| Accelerated depreciation | 0.27 |
| Extend alternative minimum tax patch | 0.48 |
| Make income tax cuts expiring in 2010 permanent | 0.29 |
| Make expiring dividend and capital gains tax cuts permanent | 0.37 |
| Reduce corporate tax rates | 0.30 |
| Spending Provisions | |
| Extend unemployment compensation benefits | 1.64 |
| Temporary increase in food stamps | 1.73 |
| Revenue transfers to state governments | 1.36 |
| Increase infrastructure spending | 1.59 |
| Source: Mark Zandi, Moody’s Economy.com. | |