If the Government wants to stimulate the economy, then why not just declare a payroll tax holiday immediately?
It’s fast to turn on, fast to turn off once CPI ticks up, and you don’t have all these “is it really shovel ready” questions you have with fiscal stimulus.
People will save some of the tax cuts, but people need to pay down debt too. That’s why you keep it going until there is enough spending that it starts to show up in CPI.
And a critique:
The main problem with a payroll tax holiday is that it minimizes Congressional opportunities for graft and larding out goodies to their contributors. That makes it both wise and politically unfeasible, at least until we get a better class of congresscritter.
Uh oh. We’re screwed.