‘The payroll tax holiday would get money to people over the next six to eight months. We’re looking to send checks to Americans immediately,’ explained Treasury Secretary Steven Mnuchin in the press briefing room. ‘Americans needs cash now and the president wants to give cash now.’
‘And I mean now – in the next two weeks,’ Mnuchin added.
Mnuchin said he was previewing the plan with Capitol Hill Republicans and would reveal more details later, but he suggested the amount could be more than $1,000. There would also be some income cut-offs. ‘You don’t need to send people who make a million dollars a year checks,’ he said.
Bad policy is bad policy… even if there is a pandemic. This will only exacerbate things as we increase deficit spending right at the time that tax collections will be declining. Maybe this is something you can do if we weren’t already engaged in deficit spending, but we’re not.