Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Roubini Says U.S. Payroll Tax Cut Would Spur Jobs

Nouriel Roubini, chairman of Roubini Global Economics
Nouriel Roubini, chairman of Roubini Global Economics. Photographer: Jonathan Fickies/Bloomberg

The U.S. government should use a temporary reduction in payroll taxes to boost employment, New York University Professor Nouriel Roubini said.

“Firms are sitting on cash, but they are perceiving labor costs as being too high,” Roubini, 52, said in a Bloomberg Television interview today. “We have to reduce labor costs by reducing payroll taxes on a temporary basis for employers.”

In a Sept. 17 Washington Post op-ed piece, Roubini outlined his proposal for the Obama administration to cut the payroll tax for two years. Reduced labor costs would spur employers to hire and would give employees more take-home pay, which would lead to increased household spending, Roubini wrote.

Initial jobless claims increased by 12,000 to 465,000 in the week ended Sept. 18, Labor Department figures showed today in Washington. The total number of people receiving unemployment insurance declined, while those getting extended payments rose.

“There is a bit of a chicken-egg problem,” Roubini said. Firms aren’t hiring because they perceive a lack of consumer demand, Roubini said. If they don’t add new jobs, there is no labor income and, in turn, less spending, he said.

A political stalemate ahead of November’s congressional election means there isn’t any momentum for a payroll tax cut, Roubini said.

Many of the U.S. jobs lost in the recession are “gone forever,” Roubini said. Some jobs have gone overseas, while other companies have learned to produce more goods and services with fewer workers, he said.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.