Quote:
Originally Posted by Maritime Q-Scout
In these US threads I haven't agreed with rubecube a whole lot.
However, in this case I do.
Whats the most cost effective and efficient way to get aid to people? A blanket stimulus cheque.
Here's how I look at it.
Flat taxes are bad as they disproportionately hurt the poor and actually benefit the rich.
A blanket stimulus cheque does the same thing in reverse. Disproportionately benefits the poor, basically unnoticeable for the rich.
If we can quickly get cheques into the hands of people that need them, and do it effectively and efficiently. Do it.
This isn't a normal thing, its an emergency measure.
There shouldn't be people starving and losing their homes because the system is bogged down trying to determine where in the middle class to draw a line.
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Yup, exactly right. Just send out blanket money and you ensure that everyone who needs it gets it. And those that don't need it, will just spend it and stimulate the economy as well as the tax base - not perfect, but hardly a terrible outcome.
There are two major problems with trying to do it through taxes:
1) that is far most expensive (and much slower) to administer
2) many of the very poorest, and thus neediest, don't pay any taxes and wouldn't receive anything
In situations like this, expedience and simplicity are important - just get the money out there so it can do its job. Don't sweat the imperfections.