Corporate tax incentives to encourage companies to pay above minimum wage are among the budget proposals by the Institute for Democracy and Economic Affairs .
“The idea, we hope, is to nudge companies into paying higher wages but still give them that choice to respond to market conditions. Todd also proposed an Employee Equity Scheme, where employers would be incentivised to allocate shares to employees. He said doing away with the Goods and Services Tax had narrowed the tax base, and that the Sales and Services Tax was insufficient to replace the lost revenue.
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