2016 Postmortem
In reply to the discussion: This is why I despair at HRC being the candidate [View all]kenfrequed
(7,865 posts)Tax credits are probably one of the worst ways to stimulate growth. Most of the businesses that recieve it will find a way to justify it based on existing structures or training environment systems. The very nature of this kind of tax breaks work this way.
The real reason a business hires is as a last resort because they have tried everything else with their existing workforce to attempt to provide for the demand of a product or service. This is the nature of capitalism. If you want a business to change then you have to compel them by law. Attempting to bribe them with tax benefits, particularly ones that are so small, only encourages them to find sneaky ways to gobble up such a benefit.
If you want busineses to pay better the real target is to increase minimum wage. Doing so garauntees more money at the bottom and therefor more demand for products and services which will work that way up the system. A living wage would be the best of all possibilities.