Kent Conrad: “It is very clear, both tax cuts and spending can be stimulative. The first test is: Do they get out in time to be…”

“It is very clear, both tax cuts and spending can be stimulative. The first test is: Do they get out in time to be stimulative? That test applies to spending and to tax cuts. The first test is: Do they get out in time to give lift to the economy when it is weak, No. 1? No. 2, the question is: Do they go to companies and individuals who will spend the money or invest the money? Because if people save the money, that is not stimulative to the economy in the near term. So that is critically important. This is not a question of tax cuts versus spending. Our proposal on the Democratic side has a combination of tax cuts and spending, but they are designed to meet both principles, No. 1, that it gets out quickly and, No. 2, that it goes to companies and individuals who will actually spend or invest the money to stimulate the economy. With respect to tax cuts on the Democratic side, the package of tax cuts we have endorsed include the following: bonus depreciation.”