What is the implied central point of the section called "Tax Cuts"? A. Tax cuts do nothing to ease the economic plight of citizens who are unemployed during recessionary times. B. Tax cuts in stimulus packages don't work because they only shift the tax burden from the present to the future. C. The majority of taxpayers save tax rebates rather than spend the unexpected cash windfall. D. Most taxpayers prefer that the government spend more than reduce taxes during periods of recession. Let's look first at the tax cuts that are often components of stimulus packages. To do so, imagine for the moment that we keep government spending at current levels and simply cut the taxes we are collecting from people during the current period. Such an action is what people have in mind when they refer to a "tax cut." To fully appreciate the effects of a tax cut, however, we must carefully specify how it is conducted. For example, in the "Economic Stimulus Act of 2008" the tax cut consisted of lump sum tax rebates. Each eligible person received $300, regardless of income, with another $300 for each dependent child. Superscript 1 In contrast, tax cuts pushed by President Kennedy in the 1960s, President Reagan in the 1980s, or President Bush in the early 2000s reduced the marginal tax rate for many taxpayers. That is, the taxes taken out of additional dollars of earned income were reduced. This not only lowered the individual's tax liability (total taxes owed), it also increased the incentive to work more, produce more, and thus earn more, because taxpayers could keep more of what they earned