Sometimes, a man walks among us who simply spouts the bon mots of the heavens, who says things so wise, so true, that we must simply stop and reflect upon their wisdom lest it is lost in the hubbub of our mundane, everyday lives.
Sadly, Matt Continetti is just a fucking idiot.
The good news is that some Democrats and Republicans are taking a second look at a real pro-growth measure. Something simple. Straightforward. Not gimmicky. A payroll tax cut.
The payroll tax hits 60 percent of Americans, including anybody who runs a business. Cutting it would be fast, easy, and effective. Where a tax credit is complicated and invites rent-seeking, a tax cut is transparent. Last December, AEI’s John H. Makin calculated that if the payroll tax were suspended for 12 to 18 months, personal discretionary income would rise by 3.5 percent. Workers would have fatter paychecks to spend. The increase in consumption would spur demand. Meanwhile, since the payroll tax also hits employers, a reduction would lower the cost of hiring additional workers. Another way to go would be not to suspend the tax, but to reduce it–permanently.
So, here’s an idea: in the middle of a recession, we suspend the tax that pays for a.) Social Security, b.) Medicaid/care and c.) unemployment benefits. The resulting 3.5% “pay increase” will then solve all of our nation’s economic problems, as the resulting extra $117 a month for a person earning $40,000 will save our economy from the ruin that Obama has rained upon it.
It also is unclear how a combined tax that takes up 8.45% of an employee’s paycheck only gets them a 3.5% pay increase, but it does, then, make sense how employers have so much leftover money to hire new workers. Which they’ll have to, because we’ll have millions of people whose unemployment benefits are run dry about twenty seconds after this thing goes into effect.
Hurray for economies!