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I don't think the payroll tax cut will do much help to boost the employment rate in America right now. In such an occasion with rows of Americans queuing outside Mcdonald's for a job and several fainting, I think even if the payroll tax is above 30% of the individual income, it will never stop job seekers looking for a position. The main problem is, there are not so many vacancies to meet the demands. Although theoretically, tax reduction will bring about more expenditure and thus boost the economy, but with so small amount left for each person, it is almost impossible to see the expected effect. To Obama, maybe the policy was prolonged mainly to relieve the pressure of ordinary people and to reduce the sentiments of objection for Obama's next election.
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