If we are looking to further stimulate the economy, it may be the path of least political resistance. Alex Tabarrok's pitch:
[L]ots of firms are selling and hiring. In July, for example (the most recent data), firms hired over 4 million workers. Yes, 4 million. Even in declining sectors like construction there were 346,000 new hires in July alone. In the 12 months preceding July, firms hired 51.3 million workers. The problem of course is that during the same time there were 56.6 million job separations (quits, layoffs, retirements) for a net job loss of 5.3 million. Even though we are still experiencing a daily net loss of jobs it's important to remember that there are about 200,000 hires every working day Lots of firms are hiring. In order to increase employment a payroll tax cut need not shift firms "from firing to hiring" it need only increase the hiring rate of those firms already hiring or on the margin of hiring.
Free Exchange weighs in to support the idea, while one of Ezra's readers worries that we would never be able to end a payroll tax holiday.