Between tax cuts, family leave, new spending, and probably other stuff, this would be the biggest stimulus bill since Obama’s 2009 stimulus and the Bush 2008 Troubled Assets Relief Program.
Details are still vague, but it looks like this is a “do something, do ANYTHING!” type of proposal for a White House that has had no plan for CV, and is totally on its heels.
But, that’s okay. We need big action yesterday.
I’ll be interested to see the rank and file Republican reaction to this. Nearly all Republicans votes against the stimulus bills because it (gasp!) spent money we didn’t have. Will this be a repeat? We are very likely looking at the largest deficit in history — we were already on track for $1 trillion in red ink and it could double, by my estimation, this year.
For Republicans who claim we are overreacting, they may be in a difficult spot: continue their spendthrift ways, or follow Trump? I can see big implications for the elections either way.
His stimulus plan, as I’ve understood it so far, is basically a payroll tax holiday, plus bailouts for travel and hospitality industries. I’m suspecting House Democrats may come up with a very different (and much better) way to spend $850 B.
Nothing good will come from the White House. They’ll want to cut payroll taxes- why? If you pay payroll taxes you’re working so you don’t need a tax cut. If you’re not, the payroll tax cut does you no good. Moreover, it cripples the SS trust fund.
Tax cuts won’t help. But that’s the only tool they know how to use. When all you have is a hammer, everything looks like a nail.
Assuming that the main purpose is to boost Trump’s reelection odds, it would only make sense if the payroll tax cuts kick in before November (in other words, we’ll all get mailed some sort of tax refund for taxes we already paid, before November.) Is that how it works? Any tax cuts that don’t set in until after November would be electorally useless.
And I have major doubts the Democratic House would pass it.
Plenty of people are working, yet still struggling to make ends meet. I’m not saying this tax cut is necessarily good policy, just pointing out that “working” doesn’t necessarily mean “all good on the financial front.”
True enough, but if they’re making that little money that pittance they’d get in a payroll holiday is minimal. The guys making $100,000 a year would get a much larger break and not need it. I’d rather do something that targets the little guy a lot more efficiently.
Deficit spending has never really been a problem for them. They got rid of the sequester rules almost as soon as they got back into power. They’re of course going to spend in the case where there is a serious reason for it.
And they need to either put a halt on rent/utility/mortgage payments or just see if it’s possible to implement temporary UBI. There just isn’t another option for people who get paid hourly if they can’t work.
EDIT: Should clarify - meant to say put a halt on evictions/shutoffs due to lack of payment.
But wait, there’s more! Jared Kushner’s brother Joshua is in the COVID test business. (cite) Of COURSE federal support for testing is of highest priority! Will other Tramp family businesses gain funding? Gee, I dunno…
A payroll tax holiday?? That doesn’t make any sense at all!!
The people who need help are the people who aren’t working, not the people who are. As The Man They Call Jayne would say, “7.65% of nothing is - let me do the math here - nothing into nothing, carry the nothing…”
Mitt’s idea of a thousand bucks apiece for everyone wouldn’t be focused on those not working, but at least it would help them too, as well as those who are working.
Agree. If this $1,000 a person thing happens, I’m giving my check to someone I know who is out of a job. I’m lucky enough that I don’t need the money and I really shouldn’t even qualify for it.
It appears Trump has abandoned the payroll tax cut idea and is now just going to send checks to everyone. But…I wonder how it would be done. Would be it by Social Security numbers, or would it be just by people merely existing (which could lead to scams and fake IDs?)
$1000 is actually more than I live off of a month in Social Security. And it could be more trouble than its worth if they don’t exempt it from Medicaid and Food Stamp benefit requirements. (You have to make under a certain amount of income to qualify for both.)
