Originally Posted by ADL Colin

The idea of cutting taxes during a recession was popularized by John Maynard Keynes after his study of what went wrong during the Great Depression. He also advocated INCREASING government spending during a recession (increasing effective demand). Either way more money gets into the consumer's hands. Check out "The General Theory of Employment Interest and Money".

If you are interested in the opposing view check out the Austrian School of Economics (Mises, Hayek).

Both sides have their logic.