Payroll-Tax Break Said to Be Discussed by Obama Aides Amid Slowing Economy

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 talks reflect the political constraints the White House is operating under with the Republican majority in the U.S. House pushing to cut federal spending. 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.

Senator Orrin Hatch of Utah, the top Republican on the Senate Finance Committee, said today he would consider supporting an employer payroll tax cut. He also said that approving free-trade agreements and easing wage restrictions on government construction projects would be better ways to encourage hiring.

The National Journal finds that America has changed fundamentally -- embracing pessimism about the future. With the current political landscape making sane economic policy impossible, it's hard to blame them. But there are signs of hope.

Bloomberg News reports that some in the Obama Administration are not content to sit on their hands as millions of Americans stare a life of joblessness in the face. They're reportedly looking at using payroll-tax breaks to goose hiring. It's not the most stimulative use of our money -- that would be aid to the poor and jobless (see page five). But it does appear to be the most stimulative measure that has a chance of getting through the Republican-controlled House. (And even Wall St. is starting to call out the GOP for how their proposed cutting will hurt the country.)

This can and should be a battle cry for Democrats from the White House down. Just like championing Medicare has proved to be a winner for them -- even though it would seem to fly in the face of the alleged pressure to cut spending -- so, too, would championing job creation. Embracing deficit-reduction is a non-starter both politically and economically, so it's natural to fear that Democrats will stay on that train.

BUT, in another sign of good news...some Democrats in the country not only get it, they're doing something about it. We'll see if it catches on.

mj33 wrote:By the way, back in '82, does anyone know if the last 5th tier/extension of insurance was the same as this one being advocated, for 13 weeks also? Just curious even though that was then and this is now.

DesperateInRI wrote:

mj33 wrote:By the way, back in '82, does anyone know if the last 5th tier/extension of insurance was the same as this one being advocated, for 13 weeks also? Just curious even though that was then and this is now.

There has never been a 5th tier of extended benefits. The current program, EUC08 is the longest consecutive extensions that have ever been given. In the mid-70's, there was a total of 138 weeks (or somewhere in that area), however they were not consecutive. They triggered on and off based on the UE rate.

jmainframe wrote:It would take 1 of the money-hoarding behemiths (not McDonalds) to start hiring again, and the rest will follow suit. If a company like Citi Corp decides to fill 50,000 jobs out of necessity, that pay a living wage, the rest will have to do the same in order to remain competitive.

It's getting close to that point because productivity is beginning to level off, meaning the current work force is maxed-out.

mistermunster wrote:

jmainframe wrote:It would take 1 of the money-hoarding behemiths (not McDonalds) to start hiring again, and the rest will follow suit. If a company like Citi Corp decides to fill 50,000 jobs out of necessity, that pay a living wage, the rest will have to do the same in order to remain competitive.

It's getting close to that point because productivity is beginning to level off, meaning the current work force is maxed-out.

"that pay a living wage" are the KEY words in ANYTHING that NEEDS to be done, but right NOW they don't want to PAY a living wage or FULL time if any. This is the problem.

mistermunster wrote:Senator Orrin Hatch of Utah, the top Republican on the Senate Finance Committee, said today he would consider supporting an employer payroll tax cut. He also said that approving free-trade agreements and easing wage restrictions on government construction projects would be better ways to encourage hiring.

I wouldn't TRUST ANYTHING this friggin moron HAS to say. Remember this bonehead wanted to DRUG test us all for our UI this time last year. Man is a menace and NEEDS to be REMOVED from office....FOREVER!!!!