How about an immediate and permanent reduction in the payroll tax, financed by a gradual, permanent, and substantial increase in the gasoline tax? Make the two tax changes equal in present value, so while the package results in a short-run budget deficit, there is no long-term budget impact. Call it the create-jobs, save-the-environment, reduce-traffic-congestion, budget-neutral tax shift.
Wow lots of Mankiw et al, in their song sheet. Kind of a Romeo and Juliet. Lovely… Ditch old form of stimulus, tax cut is less effective at raising employment. They all sing same songs now the last stimulus songs from the chortled economists– tax cut tax cut song birds sing and stimulus songs an electric wired fence, buzz buzz sing. And he goes on he will be working on a marketing, he goes an a market buy recipes for his new song sheets.
