i disagree with your premise about demand; but on to your specific proposal:
I think that the effect of one-year tax breaks will be muted by the brevity of time. I would rather see a dramatic slashing of corporate income taxes that leaves a lower rate (say, 5-10%) over a longer period of time or (preferably) indefinitely. I think slashing the capital gains rates taxes would also give us powerful results.
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Some excellent work on this topic has come from Valerie Ramey of the University of California, San Diego. Ramey finds a government-spending multiplier of about 1.4 — a figure close to what the Obama administration assumed, but much smaller than the tax multiplier identified by the Romers. Similarly, in recent research, Andrew Mountford (of the University of London) and Harald Uhlig (of the University of Chicago) have used sophisticated statistical techniques that try to capture the complicated relationships among economic variables over time; they conclude that a "deficit-financed tax cut is the best fiscal policy to stimulate the economy." In particular, they report that tax cuts are about four times as potent as increases in government spending.
Perhaps the most compelling research on this subject is a very recent study by my colleagues Alberto Alesina and Silvia Ardagna at Harvard. They used data from the Organization for Economic Cooperation and Development to identify every major fiscal stimulus adopted by the 30 OECD countries between 1970 and 2007. Alesina and Ardagna then separated those plans that were in fact followed by robust economic growth from those that were not, and compared their characteristics. They found that the stimulus packages that appeared to be successful had cut business and income taxes, while those that evidently did not succeed had increased government spending and transfer payments...
what about combining a slashing of the corporate and capital gains tax rates with adopting the debt-reduction comissions' suggestions of lowering income tax rates and removing the vast majority of tax credits and loopholes?