Committee for a Responsible Federal Budget

Eugene Steuerle: Who Should Pay For The Economic Relief From The COVID-19 Crisis?

Apr 15, 2020 | Other Spending| Economics

Dr. Eugene (Gene) Steuerle is an Institute fellow and the Richard B. Fisher chair at the Urban Institute and a member of the Committee for a Responsible Federal Budget. He recently wrote a piece for the Tax Policy Center, an excerpt of which is below:

As Republicans and Democrats joined hands to provide the most recent of what might be several stages of relief from our national pandemic crisis, almost everyone—fiscal hawks and doves alike—agrees that this isn’t the time to think about who should pay for the recovery.

The conclusion may be correct as a political matter but not as an economic one. The payoff from these rescue packages likely will be high, just as might your borrowing to finance additional education or simply to shelter and feed your family. But even worthwhile debt-financed investments eventually must be covered. While this may not be the time to make those judgments about payments, holding off determining who pays has little or nothing to do with the timing of when they pay.

Read the entire piece here.

"My Views" are works published by members or staff of the Committee for a Responsible Federal Budget, but they do not necessarily reflect the views of all members or staff of the Committee.