Tuesday, March 9, 2010

Subsidised wages.


If a business cannot pay reasonable wages then should it be fail as it is an inefficient user of an economic resource, labour. low wages are subsidised by the higher paid salary and wage earners, whose tax goes to pay for benefit top ups, including WFF from the government to enable the low paid to survive and keep working. Effectively a transfer from highly taxed incomes to enable otherwise unsustainable businesses to pay miserable wages. Before you say employers pay taxes, that is only if their accountant is no good! It is time employers stopped getting a free ride by the state topping up inadequate wages.

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