Low payroll taxes would help strengthen the economy in a number of important ways:
1. An extension of the payroll tax cuts would put more money in the pockets of virtually every American. That means Americans will purchase goods and services that they otherwise would not, boosting demand.
2. For Americans in debt, the payroll tax cuts allow them to pay off their debts more quickly. A faster deleveraging process will help the economy heal faster.
3. The payroll tax cuts increase wages for low and middle income earners at no cost to employers, giving companies more flexibility in hiring.