– According to Macroeconomic Advisers, allowing the payroll tax cut to lapse “would reduce GDP growth by 0.5 percent and cost the economy 400,000 jobs.”
– Barclay’s estimated that letting the cut expire would knock 1.5 percent off of first quarter growth next year.
– Ameriprise Financial Services estimated that extending the cut “is likely to add between 750,000 to 1 million jobs.”
– Susan Wachter, a finance professor at the University of Pennsylvania’s Wharton School, calculated that the payroll tax cut “would add 1 percentage point to economic growth and create 1 million jobs next year.”
– Regional Economic Models Inc. estimated that the cut would pump “$120 billion into U.S. households in 2012.”
