Then comes the question of what politicians do when they have too much money, a rare coincidence indeed.
There is, after all, something a little goofy – in a technical and economic sense – about collecting money through taxes and then returning some of it to the same people who paid it.
The taxes remain in place, as a deterrent for people to work in the first place. There is no redistribution here; it’s not about giving money back to different, low-income people. People are likely to see a one-time check for $300 as a gift card, as Abrams suggested. This will likely lead to modest consumer splurges – a bad thing to encourage at a time when we are facing inflation.
Why wouldn’t Governor Kemp and all the other governors follow suit, to help the Americans and Ukraine? Maybe because they can sign the checks now, and maybe they don’t care so much about higher gas prices later when voters are in the voting booth.
Again, the basics apply: good policy makes bad policy. And we all suffer from our divisions.