Give Payroll Tax Cuts to Employers, Not Employees

In his most recent weekly radio address, President Obama proposed extending the 2011 employee payroll tax cut for another year, reiterating his argument that it will create jobs. I disagree and don’t think it’s worth extending. While Treasury Secretary Timothy Geithner claimed back in January that the payroll tax cut would create 1.5 million new jobs, Joel Prakken of Macroeconomic Advisors says it has created only 300,000, and other observers estimate the number is even lower.

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