September 5, 2010
THE PROBLEM FOR THE UR...:
Economists: Second Economic Stimulus Needed: National Debt Not Most Important Issue; Experts Suggest Infrastructure Spending, Payroll Tax Holiday Would Spur New Hires (Jimmy So, 9/05/10, CBS News)
Laura Tyson, the former chairwoman of the Council of Economic Advisers under President Bill Clinton, and Mark Zandi, the chief economist at Moody's Analytics, told CBS' "Face the Nation" that more stimulus programs - in the form of infrastructure spending, a payroll tax holiday and a research and development tax credit - are needed. [...]Also on the program, Gretchen Morgenson, an assistant business and financial editor at The New York Times, said she thinks infrastructure programs won't work quickly enough.
"Let's go for things that will have a more immediate impact, like, say, a payroll tax holiday," Morgenson said. [...]
The suspension of the payroll tax is one of the measures expected to be announced by President Obama on Wednesday. Some analysts are skeptical that it, along with other programs, would be able to lift growth significantly. But Zandi said it will have an impact.
"I think if we suspend the payroll tax for businesses that go out and hire additional workers, expand the job tax credit that is in place today, I think that could be effective and be helpful in the next six, 12 months, when the recovery really needs it. I think that would be a boost to the economy," he said.
...is that Republicans will be eager to help him with a payroll tax holiday and it undercuts two years of Democrat rhetoric about stimulus spending as well as thirty years of their arguing that tax cuts are bad for the economy.
