[lewislynn]

Please explain. Your gross employee costs go down by 20%. How would that result in lower profits?

You're mixing employee costs with price reductions, they aren't directly related. The controversial possible 20% price reduction isn't entirely from the backs of labor. Labor wage reductions are only part of the total savings.

Reduced prices can result in reduced profits...

[woodbeez]

You're mixing employee costs with price reductions, they aren't directly related. The controversial possible 20% price reduction isn't entirely from the backs of labor.

Reduced expenses aren't related to increased profits? I also don't see how 20% is so controversial when the employer sees a 15% reduction in FICA costs alone in gross employee cost.