Greg Mankiw on Tax Cuts

In the New York Times, Harvard economics professor Greg Mankiw suggests that tax cuts might accomplish what spending hasn't: "These studies point toward tax policy as the best fiscal tool to combat recession, particularly tax changes that influence incentives to invest, like an investment tax credit. Sending out lump-sum rebates, as was done in spring 2008, makes less sense, as it provides little impetus for spending or production."