For now, Republicans and Moderate Democrats have opposed the current stimulus package for a variety of reason. What they haven’t provided is a clear alternative to the package. The one thing they did offer, a $15,000 tax credit on house purchases, is beyond dumb. Do Republicans miss the housing bubble?
A payroll holiday for 12-18 months would mean an immediate raise to all workers. And anyone that takes checks or pay stub will notice an immediate bump in their weekly pay. So for instance, my last gig’s salary of $30/hr for 40 hr/wk would mean an increase of salary of $91.80… a week… for 52-78 weeks. Compare that to the current plan of cutting $300 or $600 checks per person or even $1000 per couple for an entire year. Since employers are no longer penalized for hiring new workers, this could help lower the unemployment rate. Since payroll tax is regressive, it helps the poor even more.
So how much would this cost? Nothing, for you and me anyway. Since politicians only care about how much would cost the government in tax revenue, one could offset the “cost” with a higher gas tax or an introduction to a carbon tax. Instead of spending a few days debating where to spend $800-900 billions, the government could appropriate the revenue for infrastructure or environmental projects. While this does not guarantee that the money will be well spent, it is an improvement to trust us or…
“Our nation will sink deeper into a crisis that, at some point, we may not be able to reverse,”
Update: $780 billion. It’s bi-partisan bill so you know it sucks twice as much as a partisan bill.
Update #2: Same argument, but… damn