Economist Stephen Moore floats a proposal today that makes a lot of sense:
“Before President Trump suspended negotiations Tuesday, he and Congress were homing in on an economic stimulus plan that would cost some $2 trillion. That money would fund schools and hospitals, a bailout of mostly Democratic states and cities that have amassed large budget deficits, small-business loans, airline and Postal Service bailouts and $1,000-a-person payments to households. It’s a mishmash of spending that aims to inflate the economy for a few months.
“There’s a better way. Instead of spending the money, why not cut out the government middleman and not collect the taxes? In 2020 the personal income tax was expected to raise $1.81 trillion and the corporate income tax $260 billion, for a total of $2.07 trillion. For a little more than $2 trillion, Congress could suspend the personal and corporate income tax for a year.”
I doubt there is anyone in Congress willing to consider giving up control over federal cash flows for a year. But they wouldn’t have to. Congress was going to borrow the $2 trillion anyway.