In 2008, the Congressional Budget Office, looking to recover the economy, issued the following statement in a CBO Report: "The most effective types of fiscal stimulus (delivered either through tax cuts or increased spending on transfer payments) are those that direct money to people who are most likely to quickly spend the bulk of any additional funds provided to them." In other words, income elasticity has to be generally elastic in order to see positive economic change from tax cuts or increased transfer payments.

Now, eight years later, in a still sluggish economy, tax cuts and tax reforms continue to be controversial features of economic stimulus proposals. A highly-politicized debate continues to rage in the 2016 presidential election campaign as to whether tax cuts and tax reforms, along with increased transfer payments, are or are not effective in stimulating the economy. Integrating your understanding of income elasticities and your personal opinion of how Americans usually spend unplanned income, build a one-page (at least 500 words, single-spaced) insight paper on "tax cuts, tax reforms, and transfer payments as economic stimulus."

This assignment will be graded on conceptual integrity, thoroughness, and grammar. If you refer to other sources, be sure to cite them.