With lockdowns, quarantines, and mandated closures of businesses now savaging some parts of the economy, fiscal stimulus is on the table. Some want a payroll tax cut, which could work, but if you lose your job because your restaurant closed you no longer have a paycheck to deduct those taxes from. There is also talk of bailing out select industries impacted by the virus.
Some Republicans simply want to cut a $1,000 check to every American. There may be better ways to get money into the hands of folk who need it, but this isn’t the worst idea.
Payroll tax cuts won’t get to folk losing their jobs, and picking winners and losers in big industries is intolerable to many Americans. Handing out some cash to many Americans who have almost no savings for a few weeks would likely indirectly help many small businesses impacted and provide cash to those laid off. It could also be implemented relatively quickly.
There are various versions of this that may work. You can read more about some of the plans on the table here.