Douglas Holtz-Eakin joins Larry Lindsey and John H. Makin in supporting a payroll tax cut:
[A] 1-year, 6.2 percent reduction in the payroll tax should be at the center of discussion. It is a tax that impacts all Americans. Cutting the payroll tax will target the labor market and have real impact on the marginal incentives for employment. And it is large enough that even if some of the cut is "saved" this will simply serve to shore up the weakened balance sheets of households and lower risks facing our banks and financial institutions.
The political and economic benefits are clear. All it needs is a political champion.