A $13 trillion tax rebate program would instantly revive this economy, a refund of three years income taxes to every household, with a minimum payment of $50,000. Half the rebate should be required to pay back debt, which would clean up credit markets, and restore capital levels, asset quality, and liquidity of lenders.
Is the above statement true?

Probably not. The big question is where would the government get the money for the refunds?

If the answer is that people just would not have to pay taxes for the 3 year period, this would likely be a help for the private sector. Of course in this case the government would collapse and default on its massive debt, which would be a good thing for the long-term, but bad for the short-term.

If the answer is an actual refund after regular taxes are collected, then the money would come from government printing or borrowing and sink the country into a worse-off debt and money supply condition.

Half the rebate should be required to pay back debt, which would clean up credit markets, and restore capital levels, asset quality, and liquidity of lenders.
I think this would defeat the purpose of returning or letting people keep their earned money. It might be a bit better to let the poor lenders fail, remove government intervention in the credit/banking sector, and allow returned/kept taxes (i.e. earned money) to freely flow where demand dictates.

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