The Labour Party. All discussion here please

[Top Cats Hat]

4 hours ago, Hotmale 1954 said:

They never say for instance 'we have millions working only 20 hours a week on 50p more than the minimum wage'

The millions who would probably be better off not working. 

Although employment is going up, tax revenue is not going up by anything like the same rate because so many of these 'new jobs' either pay so little or have such few hours that employees are inside the allowance or are so poorly paid that employees are in receipt of tax credits.

 

We are basically subsidising low pay employers.

[woodview]

8 minutes ago, Top Cats Hat said:

Although employment is going up, tax revenue is not going up by anything like the same rate because so many of these 'new jobs' either pay so little or have such few hours that employees are inside the allowance or are so poorly paid that employees are in receipt of tax credits.

 

We are basically subsidising low pay employers.

How is being paid 50p over NMW 'subsidising a low pay employers' ? Have you got experience of running a business? What do you propose NMW and tax threshold to be?

[ricgem2002]

26 minutes ago, Top Cats Hat said:

 

 

We are basically subsidising low pay employers.

thank the eu for that 

[tinfoilhat]

24 minutes ago, ricgem2002 said:

thank the eu for that 

Yeah, because that area has got nothing to do with our government has it 🤪

[ricgem2002]

Just now, tinfoilhat said:

Yeah, because that area has got nothing to do with our government has it 🤪

can you elaborate more ?

[tinfoilhat]

Just now, ricgem2002 said:

can you elaborate more ?

I'm not sure how the EU makes our government subsidise big business, and our government is completely helpless to stop it.

 

Perhaps you could point me to some specific EU directives or something. I always thought things like tax credits was down to our government. Hope you can show me how it isn't. 

[the_bloke]

1 hour ago, Top Cats Hat said:

Although employment is going up, tax revenue is not going up by anything like the same rate because so many of these 'new jobs' either pay so little or have such few hours that employees are inside the allowance or are so poorly paid that employees are in receipt of tax credits.

 

We are basically subsidising low pay employers.

Are you suggesting that the tax credits system artificially keeps wages low?

[tinfoilhat]

2 minutes ago, the_bloke said:

Are you suggesting that the tax credits system artificially keeps wages low?

Honestly, yes. Sort of.

 

If I'm asda, why should I pay more to my workers when I can get away paying them less because the state will top up their wages and money for rent? Small businesses would struggle to keep up though.

[Top Cats Hat]

1 hour ago, woodview said:

How is being paid 50p over NMW 'subsidising a low pay employers' ? Have you got experience of running a business? What do you propose NMW and tax threshold to be?

Any business which pays a wage which makes the employee eligible for tax credits is being subsidised by the taxpayer.

 

No, I don't have any experience of running a business but I do employ people all the time. I work in an industry where the people I need are highly skilled so the wages I pay put all my freelancers in the higher rate tax bracket so no real experience of having to pay low wages.

[woodview]

2 minutes ago, Top Cats Hat said:

Any business which pays a wage which makes the employee eligible for tax credits is being subsidised by the taxpayer.

 

No, I don't have any experience of running a business but I do employ people all the time. I work in an industry where the people I need are highly skilled so the wages I pay put all my freelancers in the higher rate tax bracket so no real experience of having to pay low wages.

So, what's the answer? If nmw keeps going up, lots of those people won't be employed at all as it stands now. Also, you do fully support a system that ensures a vast supply of labour that will work at nmw. If labour supply was more limited then supply and demand would cause low wages to rise. You might realise being in a high earning industry, that those pay rates are partly due to limited supply of suitably skilled staff. If your role had a large supply of available labour, your rates would fall.

In principle though, I do agree wages need to rise across the board, and critically productivity rises, so more and more people come off benefits and into taxable wages.