Posts Tagged ‘Social Security Tax Cut’
Costly Unemployment
As Congress considers–and eventually extends–a temporary payroll tax cut and extended unemployment benefits past 2/12, it should note that if both lapse GDP in ’12 would be reduced by 1%, when GDP growth is only 2%. They might also note that when workers lose their jobs when unemployment is below 6% they lose 1.4 years…
Read MoreTax Cut Stimulus
If Congress does not extend the temporary Social Security payroll tax cut on employees of 2% (from 6.2% to 4.2% on the first $106,800 of income) beyond the end of ’11, that would cut about $120 billion off GDP. And, if long-term unemployment compensation is not extended that’s another $30 billion. Together, that’s a 1%…
Read More