Impsforever wrote:
Okay, let's do this one step at a time. But what happens if the consumers spend 2.5% more than they would have done (which is presumably what would happen if the tax cut was spent another way)? Who gets the money?
I think I see you point. Perhaps the govt. is hoping we'll spend more than 2.5% extra? In other words, they're trying an economic psychological sleight of hand.
Or more likely they're hoping it'll get them through the next election, and into the next economic cycle.