Quote:
Originally Posted by iggy_oi
Another possible way of giving employers incentive to retain employees could be to give them a tax break based on retention. If a business doesn't reduce or if it increases its staff/labour costs throughout the year, maybe they could be have their business tax rate cut by 1%. Depending on the size of the company and it's revenue that could actually be a very good incentive.
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I'm not sure why I'm bothering here, but companies looking at laying off significant numbers of employees aren't making profits and so aren't paying business taxes.
Your proposal would reward companies who can afford corporate taxes (those growing or maintaining their staff) while paradoxically in a relative sense punishing those who can't (the small cohort who are cutting staff but manage to maintain marginal profitability and so would be paying tax).
Everyone else pays nothing or is restructuring for an outside reason (merger/relocation/end of short term contracts etc.) not affected by short term tax rates.
Better to let failing companies fail (or restructure to return to profitability) and bail the people hurt by layoffs out individually than intervene like in any of the scenarios you imagine.
Saving a job when it's not needed is a waste of life for the employee (the purgatory of going to work with nothing to do), is bad for the company (morale, waste and inefficiency that comes from being overstaffed), and is thus a waste of tax money.