Suspending the payroll tax really would stimulate the economy

Published May 29, 2020 3:00am ET



The recovery stage for our economy is finally here, and now, the policy priority has to shift to getting people back on the job and businesses up and running. The best incentive to get businesses hiring again and get workers off of unemployment is to suspend the payroll tax for the rest of the year.

So far, Congress’s “stimulus” plans have cost more than $2.1 trillion on short-term aid to workers, businesses, and states, but they haven’t stimulated much of anything other than government dependence. House Speaker Nancy Pelosi favors another $3 trillion spending bill that would actually encourage states to keep their economies shut down by paying their bills and incentivizing workers to stay unemployed for many more months by extending unemployment benefits that pay more than a job would. It’s no surprise that even though we now have 35 million unemployed workers in America, employers are having a hard time luring workers back to jobs. In 31 states today, welfare and unemployment benefits can pay more than work.

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