(Photo by Stephen J. Cohen/Getty Images) Getty ImagesRapper-turned-Hollywood celeb Ice Cube has some advice for Washington’s coronavirus relief efforts that Wall Street will absolutely love: read his lips, don’t pay taxes. Payroll tax cuts were used by the Obama administration in 2011 and 2012 as part of the 2010 Tax Relief Act. Those cuts halved the rate of payroll taxes paid by employees from 6.2% to 4.2%. At the time, the reduction in the payroll tax increased disposable income by about $100 billion per year, a potential liquidity shock to the upside. “A payroll tax cut could provide a material jolt to economic activity,” says Mike Gapen, Barclays’ U.S. economist.

Source: Forbes June 28, 2020 13:10 UTC