Mark Zandi, of Moody's, has estimates of the most stimulative methods for igniting the economy.
Fiscal Stimulus Bang for the BuckSource: Moody's Economy.comBang for the BuckNonrefundable Lump-Sum Tax Rebate 1.01Refundable Lump-Sum Tax Rebate 1.22Payroll Tax Holiday 1.24Job Tax Credit 1.30Across-the-Board Tax Cut 1.02Accelerated Depreciation 0.25Loss Carryback 0.22Housing Tax Credit 0.90Extend Alternative Minimum Tax Patch 0.51Make Bush Income Tax Cuts Permanent 0.32Make Dividend and Capital Gains Tax Cuts Permanent 0.37Cut in Corporate Tax Rate 0.32Extending Unemployment Insurance Benefits 1.61Temporary Federal Financing of Work-Share Programs 1.69Temporary Increase in Food Stamps 1.74General Aid to State Governments 1.41Increased Infrastructure Spending 1.57Low-Income Home Energy Assistance Program (LIHEAP) 1.13Note: The bang for the buck is estimated by the one-year dollar change in GDP for a given dollar reduction in federal tax revenue or increase in spending.
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