Fiscal Multipliers


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Payroll tax holiday right up there for a tax cut!

Fiscal economic bank for the buck
One year $ change in real GDP for a given $ reduction in federal tax revenue or increase in spending

Tax cuts
Non-refundable lump sum tax rebate 1.02
Refundable lump sum tax rebate 1.26
Temporary tax cuts
Payroll tax holiday 1.29
Across the board tax cut 1.03
Accelerated depreciation 0.27
Permanent tax cuts
Extend alternative minimum tax patch 0.48
Make Bush Income Tax Cuts permanent 0.29
Make Dividend and Capital Gains tax cuts permanent 0.37
Cut in corporate tax rate 0.30
Spending increases
Extending UI benefits 1.64
Temporary increase in food stamps 1.73
General aid to state governments 1.36
Increased infrastructure spending 1.59
Source: Moody’s Economy.com


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