There's no excuse for payroll tax on entry-level jobs.
Payroll tax is an indirect tax; it is nominally paid by employers, but "passed on" in three ways:
(i) fewer jobs for the unemployed,
(ii) lower wages for workers, and
(iii) higher prices for consumers.
All three effects are regressive...
One way to alleviate these problems without sacrificing revenue is to DISAGGREGATE payroll tax -- that is, tax the employer on the wage or salary of each employee, applying a threshold to the individual wage or salary instead of the whole payroll. By appropriately choosing the rate, one could make the threshold high enough to EXEMPT THE MAJORITY OF WORKERS, including nearly all new entrants to the workforce...
What would the rates and thresholds be?...
More: http://t.co/Ghdda6p .
Comments
Re: Make payroll tax progressive (at GetUp!)
Do you want this so you can afford to pay a Carbon tax that you all want wankers