On Face the Nation, agreement on 'partial' payroll tax holiday for new hires.

[flpoljunkie]

Both Moody's Mark Zandi and economist Laura Tyson think this is a good idea to help create jobs. They both like the Research and Development tax credit, which has been in place since 1981, but never made permanent.

The New York Times' Gretchen Morgenson is also on the show. She thinks we need to concentrate on things that provide an immediate impact, like the partial payroll tax, so people can spend again and get the economy moving.

Laura Tyson wants to use the revenue from not renewing the tax cuts for the top 2% to fund the R&D tax credit and the partial payroll tax holiday. Mark Zandi disagrees. He would like to extend the Bush tax cuts for the top 2% for another year, or perhaps two, and then phase them out.

Only 2 to 3% of the small business community would be affected by raising the tax cuts on the top 2%. She urged the small business bill be passed. The Senate will address this when they return from the August recess.

Harry Smith asks, 'Is it time for a second stimulus? Like a new WPA?' Tyson says we need to look at infrastructure. It creates demand right away and the ability to grow and be productive in the future. Tyson says we have $2 trillion of unaddressed infrastructure needs.

Tyson also said we need to focus on targeted job creation and not the deficit.

A good discussion. The political discussion is next.

[spartan61]

1. I'm still confused about why there are so many who want

to extend the bush tax cuts. This has been in place for ten years and did not provide jobs, so why extend it for a couple more years? Has anyone made a rational argument as to why it would help to extend them or make them permanent? I know we have a lot of stupid Americans, but don't they see that this is a no brainer? Are the Democrats just not getting the message out loud and clear and in easy to understand terms?

[flpoljunkie]

4. Problem is Bayh, Conrad, Nelson have already said no to not renewing Bush tax cuts for top 2%

And, sadly, there are not the only ones. In the panel discussion, Politico's Jim VandeHai said the renewal of the Bush tax cuts will not be resolved before the election as the Senate will end up extending the Bush tax cuts for the top 2%--for at least a year or two. He said the base would not tolerate it, if they did this before the election. He's right there.

[WhiteTara]

6. their parents are getting ready to die and they want

their parents whole amount of money? :shrug: Or they're being paid off by someone whose parents with lots of money are getting ready to die. :shrug: all politics are personal.

[Skink]

2. why not a rebate check? I liked when Bush sent them out.

[flpoljunkie]

5. I think the Make Work Pay Tax Credit is still in effect for 2010.Here's a 'bang for the buck' chart.

In 2009 and 2010, the Making Work Pay provision of the American Recovery and Reinvestment Act will provide a refundable tax credit of up to $400 for working individuals and up to $800 for married taxpayers filing joint returns.

http://www.irs.gov/newsroom/article/0,,id=204447,00.html

[xchrom]

3. I was fortunate enough to be part of lecture

That Tyson gave in San Jose years ago.

I got to meet her and chat -- she's really a smart person.

[Yavin4]

7. There's This Bizarre Association in Washington Between Tax Policy and Job Creation

Look, tax policies do not matter one bit when it comes to creating jobs in the private sector. People are hired based on demand for services, not the tax rates that they pay. When demand for goods and services increase so does the hiring.

However, today, there's a new hitch, globalization. Even if demand comes back, corporations are more likely to outsource the labor to meet that demand to cheaper labor markets instead of hiring domestic workers.