The Obama Tax Plan should really be called the Obama Tax and Welfare Plan. Under the plan, he will raise taxes for anyone making more than $250,000/year, maintain the Bush tax cuts for those making less than $250,000/year and send anywhere from $600 to $1,000 to anyone making less than $66,000/year, including those who don‘t pay any federal income tax. Subsidizing a person’s income by sending them a check courtesy of the federal government was once called welfare. Obama calls it a tax cut. His tax plan will not provide any lasting economic stimulus. The income subsidies the federal government sends out will be used almost entirely on consumption with very little going towards capital formation. We know the Obama plan won't work because a similar economic stimulus package implemented during the summer didn‘t work. Millions of Americans were sent tax rebate checks which were dutifully spent, typically on products made in China. There was a spike in retail sales, but after the checks were spent, the economy went back to where it was before. The stimulus provided no lasting beneficial economic impact. Similarly, the Obama tax plan will provide no lasting economic benefit. There will simply be a one or two month spike in retail sales as people earning less than $66,000/year go to Best Buy, Sears, or, heaven forbid, Walmart to spend their rebar er welfare check. After that, the economic benefit disappears. The Obama tax plan has more to do with his idea of fairness and a redistribution of wealth than with economic stimulus.