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CBO: Information on Reducing Payroll Taxes to Encourage Employment

Information on Reducing Payroll Taxes to Encourage Employment, February 3, 2010. Letter to the Robert P. Casey Jr.

  • “This letter responds to questions you posed about policy options to increase employment by reducing employers’ payroll taxes for firms that increase their payroll. Last month, the Congressional Budget Office (CBO) released a report that addressed such options, as well as other possible approaches to achieving that goal. This letter reviews the analysis in that report and discusses how key design elements of such a policy would affect the resulting gains in employment.”
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