As a negotiator on Obama/Biden payroll tax cut, I want to second @jasonfurman @paulkrugman The 2011-2012 payroll tax cut was positive because this $240 billion in additional stimulus was best we could get w/GOP House resistance - NOT because it was the best or most fair design.
A 2% payroll tax cut goes to all workers, but gives $2000 to a family making $100K, but only $600 to family at $30K. Best to give more to hard pressed families. At a minimum, a flat amount as its still progressive as those w/ lower-income gets highest boost as % of income.
In such an economic emergency, if we are sending out checks, we should include those with disabilities, unpaid caregiving and seniors -- on grounds of equity and economic impact. Though I wouldn't include higher-income families who don't need it.
With such a sudden, deep and broad downturn, speed and force matter a lot.
A key policy should be massive & immediate aid to Governors/Mayors fighting on front lines. They need quick, large dollars for policies tailored to reduce health risks, help hardest-hit & boost economies.
A key policy should be massive & immediate aid to Governors/Mayors fighting on front lines. They need quick, large dollars for policies tailored to reduce health risks, help hardest-hit & boost economies.
