[Eagle of Liberty]

Gross pay under the so-called Fair tax is likely to go down

I think what he is saying is that to keep things revenue neutral, the employer has a few options. The employer's cost for products or services will go down along with his share of the SS taxes going away. He currently budgets for your Gross salary. If the employer will not see a decrease in revenue, I don't think employers will adjust Gross pay just so that he can avoid the possible riots or mass exoduses from employees.

[Always Right]

I think what he is saying is that to keep things revenue neutral, the employer has a few options.

If wages are not cut, prices will have to rise. If the feds accept this one-time spike in prices and increase the money supply to compensate and do not panick and rise interest rates, it might work. One problem will be that people holding cash will see the purchasing power of that cash significantly decrease.

[goldstategop]

Excellent point. In our free market economy, employers want to attract and keep talented people. If they pay them less, its the employer who loses. So I don't believe the claims of Fair Tax opponents employers would pay their employees less than they do now. When it comes to getting paid for one's work, workers also have the power to decide for whom they will work.

(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)