Here are my thoughts on how to stimulate the economy.
Each taxpayer would receive 25,000. The conditional agreement is that this money all must be spend except 1% must go to savings. If the money is spent then the same recipient will receive a tax credit of 25,000; if the money is not spent, the taxpayer will need to declare as income and be taxed at a higher rate for not spending.
1. Everyone would go buy something. A new car, a down payment, improve a home. Bring someone out of foreclosure. It would improve the economy immediately.
2. Penalties would guarantee the money would be used
3. This cost is less than any bail out thus far.
4. It is like a hedge fund on the people. We have bet to much on others not the taxpayers who are footing the bill anyway
5. The banks and others are holding the money to get people back to confidence spending. We need quick action and waiting on those who do not want to spend their bonuses is not a great out of box idea