This is exactly right. Not many people understand the Austrian School of Economics, whatever you want to call it, "supply side", "tax cuts", not even the politicians that campaign for it. Not all tax cuts are created equal and the goal is not to get people to spend money but invest. The only tax cuts that work are across the board cuts that change long-term behavior. All these credits and "targeted" cuts don't do anything and might even hurt. The goal of tax cuts are to spur investment by lowering the required return on investment allowing capital to flow into more productive projects (manufacturing, startups, etc).