Thursday, May 14, 2009

Graduate Employment

Gerard O'Neill puts forward a proposal for a tax rebate on hiring graduates. The key features are below.

-Every business in the country that is up to date with their tax returns receives a graduate voucher, which they must start using between now and the end of 2009.
- If they choose to use the voucher, they have to employ a graduate (third level or plc) who is not already in employment or has graduated in the past year and been unemployed since.
the company can then use the voucher to offset, say, 50% of the graduate's salary, up to a limit of, say, €24,000.
-The offset would take the form of a straightforward tax rebate: in other words, the employer would submit their normal monthly PAYE tax return, deducting 50% of the graduate salary for that month (€1,000 at maximum level).
- The voucher is valid for one year from the date of employment of the graduate.
- It would be a policy decision whether to extent it for, say, another year - after that, recovery should have set in and thus the scheme is no longer required

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