Chuck Schumer, probably the Senate Democrats’ next leader, and Republican Orrin Hatch have an interesting proposal for a payroll tax cut in today’s New York Times. They want to suspend employer payroll taxes in 2010 for workplaces who hire employees who have been out of work for more than 60 days. Lost revenue would be made up by cutting other programs. If the employee remains on the payroll for a full year, “the employer would receive an additional $1,000 credit on its 2011 tax return.”

It’s nice to see the principle of payroll tax cuts gaining support among Senate Democrats, especially someone as savvy as Schumer. That said, the proposal seems too targeted and short-term to have any durable impact. A permanent reduction in the payroll tax would likely give a greater jolt to the economy.