As can be expected from Congress the numbers being tossed around for the coming stimulus package are continually growing. First we heard $300 billion then $700 billion even whisper of a trillion. So never to be out done. Here's why I think it should be even bigger.
I remember when the debate was on about the Bush tax cuts. I remember thinking to myself, I say myself mainly because a surprisingly few people I interact with each day want to discuss tax policy. Go figure.
Anyway I remember thinking to myself that a trillion dollars means a hell of a lot to the government, but to the overall economy, not so much. If you cut taxes by a trillion dollars you are going to put some serious pressure on the resources that works as a safety net for those most vulnerable. Starting with health care. But that trillion dollar tax cut to an overall economy of $14 trillion is a nice boost but nothing close to what we need.
I believe The stimulus package should be $2 trillion dollars over five years. First most estimates I've heard over the last few years say we're already a trillion dollars behind on normal maintenance of our roads and bridges let alone any kind of modernization. Green technology spending and development will need a nice chunk. Retrofitting government building for clean energy is another area for job creation.
On the more social sided fully fund the s-chip children's health care program and other programs to lay the foundations for universal health care. There will be more on health care in the future. But until then bounce this thought around in your head. How do we capture and reallocate the money we now spend on health care?
There might even be a way to help fund this plan. A progressive carbon tax.
While we're waiting from maintenance to scrap the Republican off the ceiling let me explain.
The carbon tax would be obviously oil and coal based products and emissions and could be other non-renewable resources. The progressive part means that each year the tax gets higher. Something like 1% the first year. 2% the next. Then 4%. next could be 6% or 8% depending how aggressive we want to be. What this progressive tax does is give everybody fair warning that you better find better ways now, because in a few years this stuff is going to be a lot more expensive.
