While Congress fiddles with how to give away money, how much pork goes to where, and how much 3 GOP Senators get as a payoff, here a compromise suggestion that will save money:
For one year, collect no federal tax on anyone who is making less than $250,000 per year. People get about 25% more income each week to buy things, pay their mortgage, or save. The money is immediately added to the economy.
If people buy things, that’s good. It stimulates demand – like a stimulus package is supposed to. If people pay their mortgage, that’s good for housing prices and the value of mortgage securities. If people save it, that is good for the credit markets.
Congress gets to still tax people earning over $250,000 (one of their goals), but those people don’t pay anymore than they are paying now.
The only loser is Congress who does not get to waste the money the way it wants to.