Where should that additional money go? "Infrastructure programs, both short-term and longer-term," Wang said. He said he favored the Senate's version, which increases infrastructure spending by about $100-125 billion, with a lot that increase going to transportation projects. That version received the backing of the Congressional Budget Office, (pdf) Congress' watchdog, which said the version would inject about 80% of spending into the economy within 18 months; the House version, 64%.

Wang added that Republicans should continue to whittle-away at minor stimulus package items that don't address the economy directly, such as sex education / family planning funds, anti-smoking and HIV prevention programs, but should not obstruct passage of the needed stimulus plan.

Favors corporate tax rate cut

Meanwhile, economist Peter Dawson would like to see a cut in the U.S. corporate tax rate, currently 35%, to 25%.

"If it creates a large increase in business investment and hiring, I would then lower it further, to 20%," Dawson said. Cutting the corporate tax rate would initially result in lower federal government receipts, which would increase the deficit, short-term, but ultimately would lead to higher receipts and GDP growth, long-term, Dawson said.

Dawson would also expand the alternative minimum tax fix to $100 billion from the current $75 billion, enabling more middle-income Americans to see a tax savings.

The price tag for Dawson's stimulus plan? About $1.3 trillion, about $100 billion more than Wang's. Each has the potential to drive inflation higher by early 2010, he said, but that's a cost the nation can and should bear, he said.

"Trust me. Economic growth with a little inflation next year beats the alternative," Dawson said.

Fiscal Policy / Economic Analysis: Congressional Democrats fell into some habits, including about $60-90 billion in questionable programs and "pet" projects, depending on the methodology used, in the fiscal stimulus plan. Many will be weeded-out, and the Republicans deserve credit for drawing attention to them. That said, the stimulus package must pass and will pass. Further, Congress must remain at-the-ready to inject another $500-$700 billion in fiscal stimulus in 6-9 months, if economic conditions do not improve, as measured by GDP, corporate hiring, manufacturing output, and business formation.