This is exactly right, from Justin Green.
Cut the payroll tax
— Justin Green (@JGreenDC) April 5, 2013
The upshot of today’s bad jobs report, assuming the numbers aren’t revised massively, is that retail sector is weak, which implies a negative effect from the increase in the payroll tax, which happened at the start of the year.
And this weakness isn’t just confined to March.
Here’s a chart of the monthly change in retail employment. You can see that the start of this year has been much weaker than many of the numbers seen last year.
FREDWhat’s a good solution?
In a recent interview with Business Insider, former Obama budget chief suggested a payroll tax holiday that would stay in place until the jobs market was healthy again.
We removed the holiday way too quickly.
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