Anybody who understands basic economics knows that tax rebates do not stimulate the economy. They don't provide additional incentives to produce. That's the role of tax cuts, which lower the cost of doing business. Lower taxes means more commerce, more jobs, and a higher standard of living.

This is no-brainer stuff, but Arkansas Governor Mike Huckabee still loves the idea of tax rebates. In fact, even one Democrat in the state legislature understands the difference between rebates and cuts. From the Paragould Daily Press:

While Gov. Mike Huckabee has expressed interest in using some of the projected $600 million state surplus for tax rebates, several local lawmakers disagree and say a rebate will not stimulate the economy or have a significant effect on each taxpayer.

"A flat rebate isn't a good idea and wouldn't make much of a difference in any single taxpayer's household," said Rep. Robert Thompson, D-Paragould. "It would be just a few dollars for each taxpayer and will likely not increase economic activity."

Huckabee on Thursday told city officials from around the state that he hoped lawmakers would consider the rebate because the surplus offers a chance for a "tax reformation."

I think Huckabee's understanding of economics needs a "reformation".