The only "payroll tax" in effect (at the federal level) is Social Security and Medicare. You currently pay 1.45% of all income, and 6.2% of the first $106,800 (per year).
Social Security is already paying more benefits than it is receiving in taxes. It's projected to be that way this year and next, then return to a positive cash flow until 2017, when it goes permanently negative.
When the cash flow goes negative, then Social Security must draw on it's 'trust fund'. Since that's just an accounting fiction, the money has to come from the federal income taxes, or increase the budget deficit further.
I think that reducing the payroll tax is a good idea, but I'm curious how it will be implemented: i.e. will it only be reduced on the first $50,000 of income, or something like that.
And I'll point out the obvious: it will put Social Security even more out-of-balance.
They only take money for SS up to 106K? Why not have every thing earned then SS is saved? I know everyone here is against SS but if we can save it then it is a non issue for the Democrats!! HINT HINT. Sometimes you have to be smarter than the Democrats.