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To: Always Right

Your logic still does not make sense.

How will product prices go up when employers/employees stop paying FICA ?

From my perspective as a small business owner, I’d be able to give better deals to customers if I’m paying 15.2% less on employee wages.


56 posted on 01/14/2008 8:53:36 AM PST by cinives (On some planets what I do is considered normal.)
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To: cinives
How will product prices go up when employers/employees stop paying FICA ?

Excluding Employee paid taxes, there is only 7% embedded taxes in the cost of goods. Now add a 30% sales tax on the item, and poof, prices go up roughly 20%. As far as wages, your costs are reduced 7.625% since the other 7.625% comes from the gross pay of the employee. The employer will only see half of the savings.

58 posted on 01/14/2008 8:59:07 AM PST by Always Right
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