Originally Posted by Snake Doctor

That's just it woj, it does seem to make sense, which is why it makes for great 30 second ads and bumper stickers, until you scratch below the surface.

Then you ask questions like "how is government spending the money less stimulative than consumers spending the money"?
I'm not saying government should take all of our money and spend it, I'm just pointing out that calling government spending "waste" and calling tax cuts "stimulative" is ridiculous. At least if government spends the money with the intention of stimulating the economy, they can target the funds towards that and be more effective than a consumer who may just pay down credit card debt or buy goods at Wal-mart that were made in China.

As for investments, you pay the tax when you sell the investment, not when you buy it, so a low rate today doesn't make buying a stock or bond or business more attractive, it makes selling one of those things more attractive.