His bottom line and your take home pay remain exactly the same
Presently, when someone uses the term "take home pay" it means after taxes have been deducted. The take home pay AMOUNT might "remain exactly the same" but the AMOUNT is BEFORE tax, not after tax. In addition to what your employer ripped you off for your new take home value would be reduced 23%...That's a double whammy!
As to reduced prices. Most all products are produced in foreign countries or the materials for their production are. THEIR prices (as in MOST prices) won't be changed by YOUR reduced wage. That's a loss to the consumer/employee.
If now, under the current income tax system, you got an increase in your hourly wage but saw your withholdings increase by more than you earned from the hourly wage increase, is that a pay raise or a pay cut? How does that fit into your equation?Is the discussion income taxes or a hypothetical sales tax? "The current system" actually exists, the sales tax is hypothetical, wishful thinking, lies and conjecture. If you have a real life example, (not one you made up) of your what if, you can post it and we'll discuss it...
The take home pay AMOUNT might "remain exactly the same" but the AMOUNT is BEFORE tax, not after tax.True, but you left out the last half of my equation: What about “You would be "ripped off" by your employer only if you assume no price reduction on goods and services”. Your response to that is:
Most all products are produced in foreign countries or the materials for their production areMany products are produced in foreign countries but many foreign corporations make products here now. Toyota and Honda are two of the big ones. They are here because they save money. Eliminating the corporate/income/payroll tax burden would encourage more investment in our country. You also fail to mention the service economy. Most services performed in America are by American citizens. If you need a lawyer, I doubt you would go abroad to find one. And as to
Is the discussion income taxes or a hypothetical sales tax? "The current system" actually exists, the sales tax is hypothetical, wishful thinking, lies and conjecture. If you have a real life example, (not one you made up) of your what if, you can post it and we'll discuss it...Increases in payroll and income tax withholdings have happened and will have to continue to currently fund promised benefits. It is not a hypothetical