How does a payroll tax holiday extension benefit those who are out of work?
I am confused, apparently Obama is pushing for a payroll tax holiday extension. If I understand correctly, this "gift" just lowers the amount to the S.S. fund, thus making it insolvent earlier. This holiday also goes to those who still HAVE jobs. So the benefit to those who are out of work or are underemployed is that their neighbor can spend money on their families for vacations,restaurants,ball games,movies, video games,clothes etc. Following this Keynesian theory, those who are out of work will have to wait for this"stimulus" to trickle through the economy and the businesses that receive the money will in turn eventually hire more people. So every time we see others enjoying themselves, we should be happy not envious because "someday" this will lead to jobs for all.
Asked By: C - 8/30/2011
Best Answer - Chosen by Asker
This isn't about economics, it's about attempting to suck up to ignorant voters before the run-up to the 2012 elections.
Answered By: Will - 8/30/2011
Additional Answers (3)
A payroll tax holiday reduces the taxes employers have to pay for their employees, making it much easier for them to hire new employees. So, the way it benefits people out of work is that it creates more job openings, and turns some of those out-of-work people into employed people.
Answered By: Teekno - 8/30/2011
You don't have to wake up the next day and go back to work.
Answered By: JohnnyK - 8/30/2011
Teekno, the Holiday lowered the Employee's contribution from 6.2% to 4.2%. The employer has been and will continue to match the 6.2... More
Answered By: The Solution - 8/30/2011
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