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Former Biden Economist Considers Domenici-Rivlin Payroll Tax Holiday

Jared Bernstein, former Chief Economist and Economic Policy Adviser to Vice President Biden, took a look at job growth after this morning’s jobs report:

“…I was also thinking this AM (hat tip, TM) about the Rivlin/Domenici idea for a full-year, full-bore payroll tax holiday, both on the employer and the employee side.

Why this idea? It’s of significant magnitude, the first name of the commission that proposed it is “bipartisan,” it cuts labor costs to employers and boosts paychecks of workers, who will spend the money, generating useful second round effects. And Alice R and Pete D ain’t exactly wild-eyed radicals, which matters in this town…”

 

Read more about our Debt Reduction Task Force’s payroll tax holiday proposal here.

2011-06-03 00:00:00

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