One reason the payroll tax issue is seen as such a big issue for this administration right now is that the payroll tax is one more financial disincentive to go to work for those who would rather sit at home and collect $600/week in unemployment benefits on top of what their state already pays. Reducing the Federal benefit to $400 — while at the same time allowing working people to keep more of what they earn — seems like a great idea.
Agreed. For a short term benefit, it’s perfect.
They're actually reducing it to $300. He's calling on the states to kick in the extra $100. We'll see how many can afford that.