No incentive is probably an overstatement, but there would certainly be less incentive. Every employer would pay the average cost of paid parental leave, regard

No incentive is probably an overstatement, but there would certainly be less incentive. Every employer would pay the average cost of paid parental leave, regardless of who they employed. That would reduce discrimination against those likely to use parental leave. Though, I would probably fund it via a payroll tax so it could remain employer-paid. I don't think it makes any difference to the economics whether you tax the employee or the employer, but changing who pays is an additional decision you'd need to explain and that would be attacked by political opponents. A payroll tax is a smaller change and equally effective, so it's the better option.