Republicans: Tax cuts to the rich, who they consider to be job creators, will stimulate hiring. In other words, they are increasing the monetary supply by returning more of it to the rich, who will then (presumably) use it to hire new people.
Democrats: Tax cuts to the middle class are more stimulative than tax cuts to the rich, and will grow demand for goods and services. In other words, they are increasing the monetary supply by returning more of it to the middle class, who will then (presumably) spend it and generate demand for goods and services.
Mitt Romney (his latest version): Tax cuts to the rich, will stimulate growth by encouraging rich people to hire more people, but if it isn't revenue-neutral (via removal of itemized deductions), it will be cut back.
Mitt's tax cut position is a curious noncommittal. If you're trying to make sure that the rich are paying as much as they were before, and therefore making their tax cuts revenue-neutral, how does it stimulate job hiring if you're keeping their monetary supply exactly the same?
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