"Well, the general idea is that you keep the tax rates the same..."
You might want to toy with the numbers available to see if anything like this scheme could accomplish the Keynesian (?) goal of budgetary surplus during non-recession times (to pay down/back the debts accured during past recessions), to see what kind of actual tax rates this would require. I would not be shocked if it resulted in mathematically impossible, let alone economically intolerable ones.
"The basic idea is that you set pay scales for the 'federal job program'(FJP) at sufficiently below market that they want private work"
That sounds like work-for-welfare.