Obama Administration Considering Payroll Tax Holiday

by Daniel Foster

The White House economic team is reportedly considering pushing for a second stimulus comprised of “tax breaks” for businesses — including a possible $300 billion payroll tax holiday, and a $100 billion extension of an R&D tax credit.

The Washington Post reports:

The staff-level discussions are in preliminary stages. But with the unemployment rate expected to rise again in new jobs numbers due out Friday, such a move could serve both to spur hiring and to combat Republican charges that Obama’s tax policies would hurt small businesses.

More spending on infrastructure – particularly transportation projects – is also under discussion, sources said. But a person familiar with the talks said it would be easier for a package consisting purely of tax cuts to “avoid the stain of a ‘bailout’ or ‘stimulus’ label.” 

The proposals could be rolled out as early as next week.

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