Link U.S. Payroll Tax Holiday to Unemployment Rate: Peter Orszag

June 30 (Bloomberg) -- Today’s fiscal policy debatestraddles two divides: one between those who support jobs andthose who favor austerity, and one between those who thinkadditional revenue is needed and those who don’t.

On the first divide, both sides are right, because thetruth is that the U.S. needs both jobs and austerity -- and acombination would be more powerful than either piece by itself.We face a very weak labor market now and, over the medium- andlong-term, an unsustainable fiscal path. It would make sense tocombine an additional round of temporary job creation measureswith a substantial amount of permanent deficit reduction thatwould be enacted now but take effect later.