I had kicked this around before in conversation but Pascal-Emmanuel Gobry proposes a year-long holiday on all taxes as the ultimate fiscal stimulus. Now, I think there are a ton of problems with this idea:
- This would be very inefficient stimulus.
- This would be destructive to the important idea taxation as the basis of a free, just, fair society.
- You don’t get anything, whereas if you increased the deficit by the same amount to repair infrastucture you get the stimulus plus the new infrastucture.
- It would be regressive.
Beyond all that, though, as a purely political ploy I think if Obama prosposed this he would catch the Republicans totally flat-footed. Indeed, is not the modern GOP nothing if not a party single-mindedly pursuing this goal? Of course they would oppose it, any have all kinds of reasons – the deficit! the tax hike the next year! not everyone is a job creator! this is a stunt! – some better than others. But by virtue of opposing something that would a) be pretty popular and b) be so totally in line with their own ideas I think it would prove pretty damaging to the GOP.