This is a terrific interview and should be read by everyone on both sides of the stimulus debate. Barro has actually done work in Keynesian economics (Krugman did not, incidentally) and he is skeptical of the stimulus. And, he lucidly explains why tax cuts are to be preferred over spending when it comes to economic stimulus:
...when you cut taxes there are two different effects. One is that you cut tax rates, and therefore give people incentives to do things like work and produce more and pay more -- maybe, depending on what kind of taxes. And then you also maybe give people more income. This income effect is the one that's related to this Keynesian multiplier argument, where it's usually argued that government spending should have a bigger effect. So that's the income effect. But the tax-rate effect, inducing people to do things like work and produce more and invest more, is a whole separate effect, and that could easily be much bigger than the multiplier thing, than the income thing.