One (mostly) good thing about Obama's jobs plan
A payroll tax reduction is just what the economy needs
A carpenter balances himself as he walks atop the frame of a home under construction in Las Vegas. A reduction in the payroll tax will reduce labor costs, which could be a huge help in the fight to reduce unemployment.
Julie Jacobson/AP
I am not exatly enthusiastic about , which is mostly just more of the failed policies he has pursued in the past. There was one mostly good part though, in the form of a reduction in the employers payroll tax. Given the fact that due to wage rigidity, labor costs have fallen insufficiently to solve unemployment, a payroll tax reduction that reduces labor costs is just what is needed. The fact that it is limited to the first $5 million could however create some distortions, making even this part less good than it could be. Still, it is despite that a mostly good thing.