The world’s hottest economist, Michelle Muccio, has created a bit of a stir with her simple commonsense stimulus plan, a one-year payroll tax holiday.
Here she is discussing the plan with Bill Schieffer of CBS News.
I like it, a payroll tax holiday would put more money in people’s pockets immediately… Money they can spend on goods and services or invest now. That will have a much more direct impact on the economy than the pork laden stimulus law recently passed by Congress. Much of the spending in that bill doesn’t actually enter the economy until 2010, 2011 or 2012.
Personally, I go step farther and cut the corporate income tax rate from the current 35 percent rate to 20 percent and suspend the capital gains tax for one or two years. Both of which will help encourage investment and help get the economy moving again.