Wednesday, March 14, 2012

From the NYT: How Is the Payroll Tax Cut Doing?

An NYT columnist argues that the payroll tax cut - which was extended earlier this semester - is having a positive impact on the economy, but this impact is likely to be reversed once the tax cut expires:

My calculations last year, based on the proposed cut of 3.1 percentage points, suggested that the payroll tax cut “could raise employment by at least a million, albeit the duration of job creation is related to how long the tax cut lasts.”