Update: Daniel Marans at FDL lays out the case against this sort of "temporary stimulus."President Barack Obama’s advisers have discussed seeking a temporary cut in the payroll taxes businesses pay on wages as they debate ways to spur hiring amid signs that the recovery is slowing, according to people familiar with the matter.The idea, which is in preliminary stages of discussion, is among several being talked about at the White House...A hiring stimulus based on a tax break for employers may appeal to Republican lawmakers, many of whom have called for measures to help businesses....A temporary break on employer payroll taxes would echo a centerpiece of the deal Obama and congressional Republicans reached in December 2010 to extend tax cuts enacted during the presidency of George W. Bush. That package included a two- percentage-point reduction in employee contributions to the payroll tax during 2011.
Jun 9, 2011
Let's Just Abolish FICA And Be Done With It
From Bloomberg News: