How long does it take for a tax cut to jolt the economy?
"That's a deceptively simple question," said Joseph Thorndike, who directs the Tax History Project at Tax Analysts. Because before you can ask how long a tax cut takes to jolt the economy, you have to ask: Does it jolt the economy?
"It's remarkably murky," Thorndike said.
Whether or not a tax cut stimulates the economy depends on how a tax cut is paid for. Or really, whether it is paid for at all.