The question is:
What can Congress and the president do RIGHT NOW that is simple, will help those of us who are out of work, and will stimulate the economy.

My answer is for them to cancel the 10% penalty on early withdrawal on our IRA investments. My situation is common, over 55, kicked out in a downsizing, can't find work, and I have almost $200K in my IRA. I feel forced into early retirement, and am considering buying investment property (4 plex rental unit in a college town). I am lucky in that my wife is still working, but many others are not as fortunate and are having to withdraw funds just to pay current bills.

So what other things do you think can be done along this line that will not only help the unemployed but also stimulate the economy?

I have already emailed the president asking him to consider this. Will contact Congress next.

Cutting the payroll taxes would put money back into the pockets of employers and employees and stimulate their spending.

You mean Social Security taxes?
That sounds like a "third rail" issue. I live too close to Sun City , AZ to go near that one.
I would have knots on my head and broken canes littering the front porch....
I like the Heinlein quote, tho. He was my favorite SciFi writer.

Social Security truly is the "third rail".

Cutting "payroll" taxes (Social Security and Medicare) only takes away from the Ponzi pool currently being given to retirees. The AARP is a very powerful organization, simply because its members VOTE. No way they would allow the poor to keep more of its money, if by doing so it would reduce the SS/Medicare pool.

EDIT: On topic, I think your idea is a good one, Bill. The penalties on early withdrawal are ridiculous, and they greatly hurt those who COULD be helping themselves.

A few suggestions:

Tax credit for hiring people over 50 (minimum age for AARP membership)

Government programs for building infrastructure like broad-band Internet with emphasis on hiring anybody unemployed past unemployment comp benefits

Sanctions on states that take federal unemployment funds and give a portion to businesses (happened in Colorado to the tune of 50%)

Funding for creative endeavors like writing (hehehe)

Tax incentive for investment into active stocks rather than frozen T-bills/bonds

Retraining programs

Straight jobs programs

Yep, AARP is strong and getting stronger. Better watch out!

Eliminate the DOT and the FDA Reduce transportation costs and allow senior citizens, and others, to spend less on drugs and more on other items.