- eliminate the employer portion of the Medicare tax, which is currently 1.45% of payroll.
- increase the employee portion of the Medicare tax, which is currently 1.45% of wages, to 2.694% of payroll of wages.
If you believe that wages fully adjust in response to taxes, then this change would have no effect on a worker's take home pay, employer costs, or government revenue because wages would just adjust up in response to the changing incidence of the payroll tax. So you would have no problem with my proposal. There is the added bonus that this policy would make people feel like government is "doing something" when in fact it isn't.
If you think that wages are currently too high (a traditional Keynesian view), then my proposal ought to: lower employer costs, and thereby raise employment and government revenue. The only question is whether the amounts above are enough to bring employment back -- but at least it would be a move in the right direction (or no change at all).