Payroll Tax Delenda Est
I’ve been keeping an eye on an idea that seemed to be gaining traction a week ago: suspending the payroll tax to stimulate the economy. The latest entries, from Dean Zerbe in Forbes:
Another idea that has been talked about in Washington and would help every small business’ cash flow is a payroll tax holiday for employers. Unfortunately, it hasn’t shown up in the Democrats’ stimulus proposals.
Giving people a temporary and full breather from the payroll tax is interesting because it comports with a long-held supply-sider theory: if people had the money being taken by the government wagged in their faces, they’d be shocked, and support lower taxes.