Reduce the payroll tax, and, what then? Same amount of money coming in, same going out on salaries, less going out on payroll tax. Now the business has options. It can buy more stuff; it can employ more people at similar salaries; it can give the owners more money.

But the argument being made appeared to be that it will give its existing employees pay rises, to each one in line with how much payroll tax it was paying for each of them previously - but this just strikes me as a bit unlikely.