I’m getting a lot of email like this, from a reader:
Jonah,
Obviously a tax holiday is the best form of stimulus, but it’s not practical for politicians. Let’s assume a guy brings home $3000/month. Suddenly his bring home is maybe $3600/month, he’s going to be inclined to pay on that mortgage, pay some bills, and maybe buy a few things. But what happens when the tax holiday expires? Now his bring home goes back down to $3000/month. This feels like a huge tax increase, and it is. It becomes all too obvious then to every working person how much of their money the government is taking from them, and they’ll want to keep the tax cut. The democrats can never allow this.