Wednesday, October 15, 2008

Son of Stimulus Package

If Nancy Pelosi is talking about another huge ($150 billion) stimulus package (like the first one worked really well) what the gov't should do to get people to spend money is to send out a gift card to a store of a taxpayer's choosing. Otherwise if you just send out a check the taxpayer would just deposit it in their bank account. This is how the idea would work. When the taxpayer fills out the tax form (s)he can indicate what store (s)he wants the gift card from. The only problems are is that it will take longer for gov't to get the cards from a specific store and the store may not have a gift card in that exact mount. The gov't may have to send out out multiple cards. Hat tip from the Glenn Beck show about this idea although the guest's suggested was to send out coupons to the taxpayers. I think the guest was joking. But sending out coupons to the taxpayer restricts the taxpayer to one particular product.

Actually better idea is to send out a debit card with the exact amount of the "refund." That way the gov't does not have to worry about what stores the taxpayer goes to.

An even better idea than the above two is just scrap the stimulus package and cut every one's (not just 95% of the population) taxes and cut the payroll tax too.

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