Let’s Have a Real Middle-Class Tax Cut

"Let's Have a Real Middle-Class Tax Cut — Obama's tax credits won't stimulate the economy" by Newt Gingrich and Peter Ferrara:

These tax credits will do little or nothing to promote economic growth because they do not reduce marginal tax rates -- the rate on the next dollar of income -- to provide powerful, meaningful incentives for productive activities such as investment, entrepreneurship and work. A tax credit is effectively a cash grant that can only affect incentives up to the amount of the grant. Indeed, such tax credits would likely reduce economic growth because the credits are phased out as income rises, and so effectively impose higher marginal tax rates over those income levels.