00:00So this is one of the largest tax raising budgets in history, and it takes the UK's
00:04overall tax burden to 38% of GDP by the end of our forecast period at the end of the decade.
00:09That's the highest it's been in post-war history and on record.
00:12So the initial incidence of the tax, which raises about £800 per employee, is initially
00:17on the employer, but we assume that in the long run about three quarters of that is passed
00:22on to the employee through lower real wages.
00:24And that means that employees, by the end of our forecast period, are losing about £600
00:30as a result of their real wages being squeezed down by the fact that employers have to find
00:34the cost somewhere, and they do it by squeezing out real wages.
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