The Case for Subsidizing Wages with a Negative Payroll Tax

A 99 Cent Store employee works to stock shelves during the coronavirus outbreak in Los Angeles, Calif., April 4, 2020. (Kyle Grillot/Reuters)
Paying employers and employees through the payroll-tax system is a faster, more efficient way to keep them together for the long haul.

NRPLUS MEMBER ARTICLE A s we’re already quickly learning, there are several implementation challenges in delivering seriously needed trillions of CARES Act relief in a timely manner to Americans amid the COVID-19 economic shutdown.

Despite the rapid scaling up of Paycheck Protection Program forgivable loans, SBA-approved banks and lenders will still take weeks to process them and distribute actual funds to businesses. Not to mention, the SBA has run out of its $350 billion in allocated funding, bringing Congress back to the negotiating table. Negotiations are currently at a standstill, causing further delay.

The U.S. Treasury has started distributing Economic Impact Payments, one-time checks from the

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