Washington, D.C. – Steve Bell, BPC’s Senior Director of Economic Policy, issued the following statement regarding passage of the payroll tax package today:
“Bipartisan agreement on the payroll tax holiday is welcome news for workers and the still struggling economy. The Bipartisan Policy Center’s Domenici-Rivlin Task Force recommended a payroll tax holiday as part of its November 2010 report, and we applaud this step. However, failure to offset the costs of the tax extension will raise future deficits and move us closer to a potential breach of the $16.4 trillion debt limit.
“In its recommendations to the Joint Select Committee on Deficit Reduction, our Domenici-Rivlin Task Force also suggested auctioning radio spectrum in order to raise revenues for debt reduction and expand wireless broadband.
“Congress must begin to set in place serious deficit reduction measures this year to resolve our mounting national debt crisis. Offsets for additional legislation that increases deficits are critical moving forward.”