HB 2016-1063 - The Full Employment and (G.R.O.W) Act (GOES TO SENATE)

[Southern Senator North Carolina Yankee]

Some parts of this are good.


Payroll tax holiday is one of the most effective means to stimulate demand and hiring. I agree with leading with that. Several of the other tax measures like expensing (good for boosting investment and durable goods orders), have promise.

Non Tax provisions like Infrastructure (provided it is built in such a way that we get the projects done and have the benefits of the project not just the spending for sake of spending. Basically more List then Keynes paying people to dig holes to nowhere), and Mortgage refinance are good as well.

If you want to stimulate the economy, it is not just about spending money. How you spend it matters.

1. Expand disposable incomes (Payroll tax cut, lower interest rates, refinancing, and cheaper energy are critical to this). This goes for both consumers and business.
2. Boost Investment long term and highly beneficial areas. (Expensing, lower interest rates, repatriation, infrastructure etc). This goes for both business and gov't.
3. Durational Safety net boosts - some of this automatic.


One should then go through each provision and ask whether it helps one or more of these objectives, or hampers one or more of these objectives.

[Southern Senator North Carolina Yankee]

What about the stability of the sin tax revenues. Generally speaking, such taxes reduce the consumption of those products and thus the revenues generated from them.



As for the currency manipulation, it presumes that China would attempt to respond "in kind" for which as the link says there are limited assets held by the US. On the other hand they could in fact curb purchasing of such debts which would drive up interest rates on the very debt needed to fund this $1 trillion bill, no?