It's pretty well accepted that in most cases, when our economy has slack, giving $1 in cash to a poor person will generate more economic activity than cutting taxes $1 for a rich person. Poor people spend what they get right away and do so locally, which puts that $1 in someone else's hands, and then someone else's. Meanwhile, if there are no good investment opportunities because we're in a recession and the poor and middle classes have no money to spend, that rich person's dollar won't go to magically create jobs, but will be parked in a non-productive investment or fuel a pointless bubble.
Ah but cutting taxes for both rich and poor is the best solution of all. A double whammy in the face of an economic recession.
