If it goes to salaries, those salaries are taxed (both payroll taxes for the employer and income taxes for the employee).
Those salaries, for the most part, get spent - on things with sales tax, creating business profits that are taxed, and supporting the employment of employees' whose wages are also taxed.
The idea that it's one giant money suck for businesses with no immediate return to the economy is not really accurate - it's not a zero-sum game.
>The idea that it's one giant money suck for businesses with no immediate return to the economy is not really accurate - it's not a zero-sum game.
No one argues $600B wouldn't help the economy. Can you point to where I said PPP will not help the economy?
Most people are starting to understand the fraud involved with PPP and understanding those funds could have gone to individuals and the money would have found its way back into the economy just the same...only faster as its not distributed out over 8 weeks with 25% reserved for non-payroll business expenses.
Of course there are arguments for why the money should have gone to businesses as it did and not people...but you don't hear any lawmakers making those argument publicly and if you do its limited to "we are saving jobs." My argument, if you feel compelled to call it that, is that there is no proof these jobs have been saved unless delaying unemployment by 8 weeks is considered a job.
> those funds could have gone to individuals and the money would have found its way back into the economy just the same...only faster
how could this possibly be true? the economy started tanking because people stopped going out and spending money. giving people money wouldnt fix this.
i must be misunderstanding. surely you're not claiming that ordering people to stay inside and restricting building capacities didn't severely lower business revenue, are you?
> PPP didn't fix it did it?
i dont know why you said this. the PPP almost certainly fixed the short term problems created by a national quarantine. we're not out of the woods yet, but what do you think happened to all the money? you think hundreds of thousands of small business owners simultaneously committed fraud and didnt use the PPP for payroll? the PPP gave people money for rent, how did it not?
If it goes to salaries, those salaries are taxed (both payroll taxes for the employer and income taxes for the employee).
Those salaries, for the most part, get spent - on things with sales tax, creating business profits that are taxed, and supporting the employment of employees' whose wages are also taxed.
The idea that it's one giant money suck for businesses with no immediate return to the economy is not really accurate - it's not a zero-sum game.