Wednesday, December 08, 2010

Payroll Tax Cut 2011

A short one on what is the real reason for the payroll tax cut. Its temporary, its a surrogate form of a check and its designed to quicken the pace of consumer deleveraging. If you subscribe to the notion that the sooner the consumer can deleverage, the sooner they'll feel more comfortable spending, this is an unpaid for, yet not totally ludicrous program. Because its tied to payroll it only helps those that can positively be confirmed as having a job and therefore avoids the handout stigma.

Unfortunately the unemployment insurance is getting extended another 12 months - that's getting close to 3 years! Why not make it 4 and every unemployed person could use the money to put themselves through college!

Better than extending money to unemployed yet again, lets put that money toward an empoloyer payroll tax holiday of 1 year?