The Worker Pays All

It is a fallacy to say that a worker will pay 4% and his boss 4%. The boss will pass on his 4% in prices, and the worker/consumer will meet the bulk of the 8%. This is not called taxation, since Labour has promised not to increase taxes, but it is taxes under another name. The work-force will pay the 8% as a 4% wage cut plus a price rise equivalent to 4% of the total wage bill. In this respect the scheme is as inequitable as our society is in general. Nothing of the bosses' profits will be touched.