Wouldn't that mean those with the least income would also get basically no support, and the wealthier, with the greater capacity to create and maintain a slushfund, would make out like bandits?
We could also have capped the size of the refund.
Regardless, I still think giving money directly to individuals is much better than PPP. PPP was offered because it benefitted banks and existing businesses, who have more political power than the poor.
The focus on payroll is exactly why corporations benefitted at the expense of people.
Providing payroll protection is a very targeted measure against that. The last thing I need is for my six-figure 2019 taxes (good investment returns that year) to be rebated back to me for a job I wasn’t going to lose anyway while 1000s of people in my town lose their restaurant and retail jobs. That’s targeted in exactly the wrong direction I think.
As I said in an edit to my original comment, I run two businesses which each received both PPP loans. I and my employees benefitted. I still think it was unfair.
My employees should have received money directly and been allowed the agency to determine how to spend that money in a pandemic world. Instead, we propped up businesses that failed anyway and now there is less money to invest in new businesses.
I know of businesses that employed people doing nothing. I also know of businesses that took the loan and still laid people off. This is not good for GDP. It would have been better to stimulate at the individual level.
This system benefitted banks at the expense of taxpayers, just like the last financial crisis.
One fairer approach would have been to just refund everybody's 2019 federal income taxes and let the market figure out how to use it. Instead, we propped up a bunch of businesses that failed anyway. But hey, the banks got a percentage.
Edit:
To add a disclaimer: I run two companies which each received both PPP loans. I benefitted. My employees benefitted. I still think it would have been fairer to give that money to individuals and not to business owners like myself.
Also, there is no reason we would have had to stop at refunding income taxes. That is just something that should have been ridiculously easy for the IRS to do quickly.