Legal Commentary

A Payroll Tax Holiday Paid For By Taxes On The Wealthy

By Big Tent Democrat

Since actual fiscal stimulus (government spending)is out according to Robert Gibbs, let's hope the next best thing, tax cuts targetted to job creation and the incomes of the working class and the middle class will be the Obama proposal. WaPo reports:

With just two months until the November elections, the White House is seriously weighing a package of business tax breaks - potentially worth hundreds of billions of dollars[. . . .] Among the options under consideration are a temporary payroll-tax holiday and a permanent extension of the now-expired research-and-development tax credit, which rewards companies that conduct research into new technologies within the United States.

Coupled with new middle class income tax cuts (and the expiration of Bush tax cuts for the wealthy), this could be good policy. The issue here though is, Atrios explains, this could be creating raionales for Obama's Catfood Commission to cut Social Security.In any event, the BEST policy options have been taken off the table, real fiscal stimulus. A Lost Decade awaits us.

Speaking for me only

Full post as published by TalkLeft on September 03, 2010 (boomark / email).