Independent analysts say that the expiration of the tax cut could shave as much as a percentage point off economic output in 2013, and cost the economy as many as one million jobs. That is because the typical American family had $1,000 in additional income from the lower tax. [New York Times]
YOU HAVE TO wonder why Mitt Romney hasn’t grabbed on this and made it an issue. Why not come out for the payroll tax cut, then challenge Obama in the debate to do the same?
The politics of a payroll tax extension is just right for one sliver of what ails Romney.
“This has to be a temporary tax cut,” said Timothy F. Geithner, the Treasury secretary, testifying before the Senate Budget Committee this year and voicing the view of many in the White House and on Capitol Hill. “I don’t see any reason to consider supporting its extension.” [New York Times]
As Bob Woodward’s new book The Price of Politics recounts, Tim Geithner tried to talk Barack Obama into not appointing him. Geithner was right.