To: A. Pole; dennisw; Willie Green; neutrino; ninenot
When the FairTax is implemented, and when business and personal income and payroll taxes disappear, your employer is going to have to make a decision. He will either take some or the entire amount he had been withholding for federal income and payroll taxes and add it to your weekly check, or he will readjust your pay figures so that your entire paycheck will be equal to what you used to call "take home pay" before the FairTax. The employer may also decide to do a little of both. Either way, you can see that the amount of money you actually receive as pay the amount you can put into your bank account will not decrease, and may actually increase.Does anyone think corporations will not keep the money for themselves?
10 posted on
09/15/2005 7:32:40 AM PDT by
raybbr
To: raybbr
Does anyone think corporations will not keep the money for themselves? They could do that yes. They could also continue to pay you your current gross salary but not have to pay the matching employer taxes. Or they could lower the costs of the goods or services they provide to the consumer.
They could do some combination of all the above. We have to remember that all they dynamics will change, but basic capitalism will not. If an employer chooses to keep all the extra money, but some other corporation doesn't and decides to pass on that money to employees and/or lower the costs to the consumer, then that makes employment at the other firm more appealing and makes that firm's product more appealing to the consumer.
All the dynamics will work themselves out it the free marketplace. It may not happen overnight, but they will level out.
44 posted on
09/15/2005 8:41:27 AM PDT by
AFreeBird
(your mileage may vary)
To: raybbr
Does anyone think corporations will not keep the money for themselves? What anyone thinks is not important and from your ping list I can see that you are one of the economically challenged Freepers.
The market will determine what the corporations do with the money. They may even outsource it by sending it to China. That ought to thrill you because you don't understand the economics of that either.
65 posted on
09/15/2005 9:08:47 AM PDT by
Mind-numbed Robot
(Not all that needs to be done needs to be done by the government.)
To: raybbr
Does anyone think corporations will not keep the money for themselves? They would if they could but could they? This assumes the corps are paying more than they have to now.
Also, this would make it easier for small biz to hire workers since withholding and keeping track of withholding would disappear.
To: raybbr
"Does anyone think corporations will not keep the money for themselves?"NO.
118 posted on
09/15/2005 10:23:29 AM PDT by
TAdams8591
(Anyone is better than Rendell!)
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