So, if by "taxes on labour" they mean income tax, they recommend that the revenue collected through progressive taxes should be cut to "compensate" for the increase in revenue from a regressive tax. Which makes the entire tax system more regressive. Plus, no net gain in revenue, which going forward we'll surely need (the dike-building bill alone is going to be horrendous).

The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman