Routledge Dictionary of Economics, Second Edition
Selective Employment Tax (H2, O4)
A tax designed by KALDOR and in force in the UK from 1966 to 1973 which sought to encourage the movement of workers from service industries to manufacturing industries by imposing a PAYROLL TAX on the former. It led to a decline in service sector employment but did not revive manufacturing industry whose problems were more severe than a shortage of labour.
References
Reddaway, W.B.
(1970) Effects of the Selective Employment Tax. First Report. The Distributive Trades, London: HMSO.
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