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Just imagine an employer telling everyone that their pay is going to be cut when the sales tax starts. Also, the pay of singles will have to be cut more than married couples with kids because singles are hit harder by the current income tax system. It's more likely that they just pay the employees the gross.

I would expect that domestic producers would be aided against imports. Importers can now play around with the amount which their US subsidiary pays for the import to make sure that little or no profit is made in the US. If a sales tax is put in place, that advantage disappears.

This gross vs. net pay "savings" doesn't make sense to me either..
Granted, I'm no mathematician but if what I am reading is an accurate description, I see it like this:
The Employer no longer has to pay matching taxes on withholding etc...
The Empoyee, no longer has taxes withheld, but doesn't recieve them either..
The Employer recieves a "Double Bonus" due to Both Reduced Costs..

The Employee's withheld taxes are not the Employer's, they are the Employee's..
They are merely withheld by the employer as required by Federal / State Laws..
Part of those funds (presently withheld) are "owed" to the government agencies as "taxes"..
If those taxes are no longer extant, then they should go to the Employees, not the Employers..
It was the Employee's money in the first place..

The Employer still benefits from not having to pay matching funds into withholding..
That is all the savings they are due..

I see no rationale for expecting Employees to end up with only the Net pay after taxes, if no taxes are being withheld..
They shoud be recieving their full paycheck, the Gross Pay..

I would agree that "something" is being misrepresented here..
I'm just not sure what..