Trump's payroll tax cuts are a terrible opening bid to address the economic fallout of COVID-19

[Yo_Mama_Been_Loggin]

Unconditional tax cuts for employers are a terrible policy response to the economic fallout of COVID-19. But employer tax credits that are tied to the provision of specific benefits for workers can be a useful way to deliver emergency help. In the long run, key benefits like paid sick leave and strong unemployment insurance should not rest on employer tax credits, but these credits might be the best way to deliver emergency benefits right now.

The Trump administration has put forward the idea of cutting both employee and employer-side payroll taxes as the centerpiece of an economic response to the COVID-19 epidemic. This is a terrible opening bid. In late 2010, the Obama White House and a Republican-led Congress agreed on a temporary payroll tax cut for employees only as a compromise measure to provide economic stimulus.

But the employee-side payroll tax cut is an even worse potential compromise this time. One reason is that it would not get enough money out the door and into households’ pockets quickly enough. A COVID-19 recession will come fast and people will need lots of help quickly. A payroll tax cut will dribble out gradually over time. Another reason is the employee-side payroll tax cut is poorly targeted and sends lots of money to high-income households. A COVID-19 recession is laser-targeted at sectors with lots of low-wage workers, and the response should be too. So, even employee-side payroll tax cuts are a poor centerpiece of any policy package responding to the coming slowdown.

Employer-side payroll tax cuts are even much worse. They are a pure windfall to business and would do nothing for workers in the short run. These employer-side cuts should be flatly opposed.

https://www.epi.org/blog/employer-tax-credits-can-be-part-of-the-economic-response-to-covid-19-if-they-finance-direct-benefits-for-workers/?utm_source=Economic+Policy+Institute&utm_campaign=93f66e5be2-EMAIL_CAMPAIGN_2019_02_22_11_12_COPY_01&utm_medium=email&utm_term=0_e7c5826c50-93f66e5be2-59078569&mc_cid=93f66e5be2&mc_eid=56485f06ea

[not_the_one]

1. This is nothing but a Wall Street pander...

an attempt to stop the freefall of the market. COVID-19, to the turd, is just a speed bump.

To the turd, the market, and money, is what is important. He has staked his re-election on "a fantastic economy".

Never mind that it is an economy that most Americans aren't able to participate in.

Hopefully most Americans can see the disconnect (yes, I know it is a stretch), and vote accordingly.

At some point, Americans sitting at home watching the teevee scream "FANTASTIC ECONOMY DUE TO TRUMP", while they are paycheck to paycheck even though they are working two to three jobs, having to choose between prescriptions and food, should register as a MAJOR disconnect.

Hopefully that "registering" will occur before November 3rd.

COVID-19 is doing two things: helping the average American to FOCUS on the disconnect, AND forcing Wall Street to see that the pathetic excuse of a man behind the curtain, is NOT "good for business".

'Cause apparently Wall Street is NOT buying what the turd is selling.

(Except for the bottom feeders who will make a bundle off of this total clusterfuck. But that is what they ALWAYS do...)