Sept. 13 (Bloomberg) -- In response to our sputtering
economy, President Barack Obama presented a new stimulus package
last week, hopefully titled the American Jobs Act.
More than half of the plan’s $447 billion cost comes from
cuts to the payroll taxes, which fund Social Security and
Medicare. This could increase the incentives to hire and work,
and get money to poorer Americans. But to avoid making our
perilous fiscal situation worse, those cuts should be paid for
with future increases in the retirement age, and the plan’s
proposed spending on infrastructure and unemployment insurance
should be substantially reduced.