Employer's Payroll Tax Should Be Cut

Robert Murphy points out that instead of reducing the payroll tax for employees, it would have been better to reduce it for employers as it lowers labor costs and would therefore increase employment.

If wages had been fully flexible, it wouldn't have mattered whether or not it was employees or employers had their payroll tax reduced. But since they aren't fully flexible for various reasons, a tax reduction for employers is the most effective way to boost employment.