No, not likely to, will

The Government has mounted a new raid on businesses with a tax on wage bills to raise £11.6bn over the next five years.
The apprenticeship levy will impose a 0.5pc tax on employment costs to help pay for three million apprenticeships over the course of the current Parliament.

You want business to employ more people so you tax business which employ people. Well done George, well done.

The actual effect will be:

But the Office of Budget Responsibility, the independent fiscal analysis body, warned that employers were likely to pass the entire cost of the new tax on to their staff by suppressing pay rises. Such an outcome could threaten the Chancellor’s aim of a “lower welfare, higher wage” economy.

Yup, that’s what will happen.

10 thoughts on “No, not likely to, will”

  1. Is there anything that makes this not an increase in employer NIC, but based on a company threshold so as to ensure that it requires a new collection and enforcement regiemen, and loads of new anti-avoidance measures?

    How’s that simplification of the tax code going, George? You twat.

  2. Osburke is that most dangerous of fools–a dickhead who thinks he is a shrewd operator. He has no understanding of economics or indeed anything. He is the kind of tosser who, if given an apprenticeship with a Punch-and-Judy man would be asking what had happened to the strings.

  3. As someone said on here yesterday, he’s just as much a statist as the rest of them. He just thinks he’s a better statist than them.

    To be fair, that’s not a terribly high bar.

  4. Osborne reinvents Selective Employment Tax (SET). In time he and The Cameron will invent the Labour Party.

    Some of us are old enough to remember this gem from the 1966 Labour Government (Britain’s democratic socialist Party) led by Harold Wilson and which worked so well.

    From Wiki…
    ‘It [SET] was levied against employers at a flat rate of 25 s per man, and 12 s 6 d for women.

    SET was intended to subsidise manufacturing industry from the proceeds of the services industries, to help exports. At the end of each accounting period, manufacturing companies would have their SET payments refunded, along with a 7s 6d bounty per employee.’

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