Summers says US payroll tax break should be extended

October 11, 2012 23:10


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


WASHINGTON - US President Barack Obama's former economic aide, Larry Summers, said on Thursday that the payroll tax break for 160 million Americans should be extended in order to help promote economic growth.

The payroll tax, which funds the federal Social Security retirement program, is set to revert to 6.2 percent from 4.2 percent at the end of the year.

"This is not the right moment to repeal the payroll tax cut," Summers told the Center for American Progress think tank. "It is $120 billion that enables cash-strapped families to spend money on what they need and provides incentives certainly for small businesses and perhaps beyond," he said.

Summers said it was critical to spur growth and increase demand and warned that the country was still at risk of a "lost decade" of the "great stagnation."

Another set of tax breaks for all Americans are set to expire at the end of the year and government spending is expected to shrink - a combination of financial shocks often referred to as the fiscal cliff.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

Breaking news
September 24, 2018
May defends 'credible' Brexit proposal -CBS News interview