Rashida Tlaib just sunk the Democrats with a stunning proposal to deal with the coronavirus including giving direct cash to illegal immigrants.
Her plan says:
“In response to the Coronavirus crisis, the Automatic BOOST to Communities Act would immediately provide a U.S. Debit Card pre-loaded with $2000 to every person in America.
Each card would be recharged with $1,000 monthly until one year after the end of the Coronavirus crisis.
Guaranteeing Universality “Every person” includes:
Dependents, so a couple with two children would receive 4 x $2000 = $8000 in total.
Non-citizens, including undocumented people, permanent residents, and temporary visitors whose stay exceeds three months.
Individuals who do not have a bank account, social security number, or permanent address.
People living in unincorporated territories or protectorates and Americans living abroad.
To ensure that this program is as universal and comprehensive as possible, the U.S. Treasury will develop its list of eligible individuals in coordination with the Internal Revenue Service, the Social Security Administration, the Federal Election Commission, and every other relevant federal, state, and local government agency, including state-level Departments of Motor Vehicles (DMVs).”
Rashida went on to explain how she would fund this:
“Funding the Program.
This Automatic BOOST to Communities Act would be a money-financed fiscal program for which no additional U.S. debt would be issued.
Instead, the program would be funded directly from the Treasury, using its legal authority to create money via coin seigniorage, which is a statutory delegation of Congress’s constitutional power of the purse.
The mechanics of this funding approach would be as follows:
The Treasury Secretary would direct the U.S. Mint to issue two $1 trillion platinum coins, under the legal authority provided by 31 U.S.C. § 5112(k).
Congress would direct the Federal Reserve to purchase the newly issued coins at full face value.
The Federal Reserve would complete the purchase by crediting the U.S. Mint’s account at the Fed with $2 trillion in reserves.
The Fed would retain ownership over the two $1 trillion coins permanently in order to ensure its own balance sheet remains fully capitalized by the Treasury.
The Treasury Secretary would “sweep” the newly created reserve funds from the Mint’s account into the regular Treasury General Account.
The Treasury would make the funds available to the Bureau of the Fiscal Service to disperse to every person in America in the form of pre-paid U.S. Debit Cards.
This approach would preserve the historical separation between fiscal and monetary policy and avoid financial entanglement between the Treasury and the Federal Reserve which would eventually undermine the independence of the Fed.
In the long term, the card infrastructure should be converted into a permanent, Treasury administered digital public currency wallet system, to serve as a privacy-respecting “eCash” complement to universal Fed Accounts and/or Postal Bank Accounts for All. This proposal should be accompanied by progressive tax reform to ensure that emergency relief provisioning does not exacerbate income or wealth inequality in the long-term.”
You can see the full text here.