Overall, proposed tax cuts have proven of positive economic impact. Refinements could further qualify tax cuts as a positive factor for economic recovery and growth. However, tax changes are not similar in economic impact. Therefore, further investigations need to be performed on impact of tax cuts for specific sectors particularly during economic crises. A conventional economic policy adopted differentially to boost economic growth, tax cuts remain an area of economic policy which experience different chances of success and failure for a broad range of complex reasons. In Obama’s stimulus plan case, tax cuts have played a significant role in effecting economic upturn by targeting specific taxpayer segments and economic sectors. There remains still to show how effective similar tax cut policies could impact positively on overall economic growth during periods of more economic activity.
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