Shark Tank star Mark Cuban outlined a unique plan for stimulus check payments in a series of tweets Sunday night. The Dallas Mavericks owner proposed a radical idea to send $1,000 payments to American households every two weeks for the next two months, but with an interesting catch. The payments would have to be used within 10 days before expiring. Twitter was buzzing after he shared his idea.
The AXS-TV chairman believes the Paycheck Protection Program was a good idea, but says the government has to "face the fact" that it did not work. The program allows small businesses to apply for funds to pay up to eight weeks of payroll costs, but the program has run into various problems ever since it launched. Cuban said the execution was "difficult" and the only real way to save businesses is to inspire consumers to return to spending.
"It's time for trickle up economics," Cuban wrote. He suggested the federal government start a "transitional" jobs program, which would include hiring "millions" of Americans for jobs involving testing for and tracking the coroanvirus. Next, the government should send "all 128m households" a $1,000 check every two weeks for the next two months. The payment has to be used within 10 days or it would expire, Cuban said.
Saving lives is more important than saving businesses. Businesses can restart. Dead people can’t live again.— Cliston Brown (@ClistonBrown) May 17, 2020
The plan would cost $500 billion, but Cuban believes this would drive up an increase in demand for "non essential products and services," which could keep businesses alive while the government figures out the impact re-opening has. "There is certainly a lot of risk in this use it or lose it approach. A lot to be considered," Cuban wrote in the end. He also asked Twitter users for their thoughts, and they had hundreds of them.
The effort isn't worth it. We already know most people will spend the money, and we know those who won't, tend to have higher incomes. So just modify taxes next year to effectively tax it back from those with higher incomes. Try trusting people instead of trying to control them. pic.twitter.com/AdXmQIPpvb— Scott Santens🧢 (@scottsantens) May 17, 2020
The first economic impact payment of at least $1,200 per American taxpayer was sent out last month as part of the CARES Act, which did not include a second payment. There are several proposals in Congress, but none have become law. On Friday night, the House of Representatives narrowly passed the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, which includes another payment, but it is unlikely to pass in the Senate. The proposed second payment would entitle some households up to $6,000. It would also be sent to anyone with an Individual Taxpayer Identification Number (ITIN), even those without Social Security numbers.
How could the plan be structured to ensure people spend it at local businesses instead of Wal Mart, Target etc...?— Brian (@Bgagnonius) May 18, 2020
Somehow it needs to start in the opposite direction. From each community. Indpndent from govrmnt. Driven by the Constitution. The gov needs to step aside in order to do its true job of protecting this great constitution. Smaller government means more resources for the people.— Paul Witter (@paulinhouse) May 18, 2020
Not to mention how are they going to track it if it goes in to someone general checking account or such? Will they make you PROVE what it was actually spent on vs just withdrawn from whatever account it was in? SO many issues with this idea that I for sure do not agree with.— tattdmoma (@tattdmoma) May 18, 2020
Love this idea. It’s the only way to get money back into the economy. One time checks are going in rainy day funds in savings accounts and not back into economy.— JasonPolan (@Jpolan10) May 18, 2020