In cutting payroll taxes to spur the economy, Trump would be following in Obama's footsteps

[mystery-ak]

In cutting payroll taxes to spur the economy, Trump would be following in Obama's footsteps
by Nihal Krishan
 | March 11, 2020 12:00 AM



In pitching a payroll tax cut to ease the economic anxieties related to the coronavirus, President Trump is following in the footsteps of President Barack Obama, who cut payroll taxes in the wake of the financial crisis to increase demand and boost the recovery.

Yet Obama's payroll tax cuts saw only mixed success, and veterans of his administration say they would have done the stimulus differently if they could.

"I continue to think it was the best we could do at the time given the political constraints. But it was far from optimal then and would be even further from optimal now," tweeted Jason Furman, a professor at Harvard University and a former economic adviser to Obama who was involved in the negotiations in 2011 and 2012 that resulted in the employee payroll tax being reduced to 4.2% from 6.2%.

The problem with a payroll tax cut, Furman said, is that it would not necessarily benefit the people most vulnerable in the coronavirus outbreak. He gave the example of a one-year payroll tax cut of two percentage points: That measure would provide up to a $5,508 tax cut to a high-income couple, but only $500 to a single parent making $25,000 a year, and no relief for workers placed on leave without pay.

more
https://www.washingtonexaminer.com/policy/economy/in-cutting-payroll-taxes-to-spur-the-economy-trump-would-be-following-in-obamas-footsteps

[Applewood]

I am concerned that any actions by Trump and congress will amount to an Obama-style "stimulus" or "bailout."  Taxpayer money down the rabbit hole. 

[Mesaclone]

In cutting payroll taxes to spur the economy, Trump would be following in Obama's footsteps
by Nihal Krishan
 | March 11, 2020 12:00 AM



In pitching a payroll tax cut to ease the economic anxieties related to the coronavirus, President Trump is following in the footsteps of President Barack Obama, who cut payroll taxes in the wake of the financial crisis to increase demand and boost the recovery.

Yet Obama's payroll tax cuts saw only mixed success, and veterans of his administration say they would have done the stimulus differently if they could.

"I continue to think it was the best we could do at the time given the political constraints. But it was far from optimal then and would be even further from optimal now," tweeted Jason Furman, a professor at Harvard University and a former economic adviser to Obama who was involved in the negotiations in 2011 and 2012 that resulted in the employee payroll tax being reduced to 4.2% from 6.2%.

The problem with a payroll tax cut, Furman said, is that it would not necessarily benefit the people most vulnerable in the coronavirus outbreak. He gave the example of a one-year payroll tax cut of two percentage points: That measure would provide up to a $5,508 tax cut to a high-income couple, but only $500 to a single parent making $25,000 a year, and no relief for workers placed on leave without pay.

more
https://www.washingtonexaminer.com/policy/economy/in-cutting-payroll-taxes-to-spur-the-economy-trump-would-be-following-in-obamas-footsteps

Let’s be crystal clear about one thing....all tax cuts are good. Period.

[Applewood]

Let’s be crystal clear about one thing....all tax cuts are good. Period.

Ok.  But I wonder what else Trump and congress are going to come up with.  The airlines are crying the blues; probably others in the travel industry and elsewhere will follow with their hands out.  Are we taxpayers going to bail out everyone? 

I believe if the executive and legislative branches don't try to tamper with the markets. things will work out on their own.  Look at Roosevelt's efforts to fix the Great Depression.  Didn't he make things worse?  I don't want that here.

[jafo2010]

I think what Trump advisors are telling him is that we have to appear like we are doing something.  Cutting taxes are not going to have much impact.  Seizing the initiative and taking back all manufacturing from China for pharma would prove huge for jobs in the USA.  Pharma had at one time been a huge presence in Puerto Rico, and they pulled out and went to China.  Nearly half of the PR is on welfare.

We need to end this flight to China because of their cheaper labor.  The time has come to put the security of the USA and its people first, something we have discontinued doing for the past 40 years.  There has to be a cost associated with moving any manufacturing to China.  I would end favored nation status for China.

China is not a friend of the USA.  They perceivably are the greatest threat to this nation.  I think they need to pay for this virus.