Quote:
Originally Posted by nomadking
Increasing business costs is not a good idea by any stretch of the imagination. Leads to increases in inflation, and decreases competitiveness. How is increasing wage costs by such a large amount a good thing? The bare minimum that would happen is that profits and therefore the tax paid, goes down.
Labour claim that their proposals for shorter working week for the same annual salary, will be self-funded by increases in productivity.
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Theres tons of data out there that a 30-32 hour working week is almost as effective as a 37 hour week.
Increasing wage costs results in income tax and NI going up so your flawed notion that less profits = less tax doesn't hold up. An actual human being resident in the UK (99 per cent of the time) is going to spend that money, and pay VAT in the process. Benefits go down with employment up.
Companies profits on the other hand - dividends and tax havens.