Prof. Strawczynski: Income tax reduction is relevant for those whose income is above the tax threshold. The higher earning half of them will simply save a significant portion of the money. If you want to boost the economy you have to give the money to those who will spend it – for example through an increase of the Earned Income Tax Credit.
The interview can be heard from minutes 6:06 to 13:37.
To hear the interview (in Hebrew): http://player.gl.bynetcdn.com/Players/ByPlayer/EmbedPlayer/GLZ?ClipID=160712-19&Type=aod&Width=300&Height=200