Actually, employers would be in a position to be able to afford larger salaries and wages. No more SS and Medicare matching, and no more cost of compliance along with other things.
if a person makes $40K and suddenly no taxes are taken out AND the price of goods (before taxes) goes down (your scenario), then there will have to be a HUGE sales tax added to even it all out
This sentence makes no sense.
yes it does make sense- in your scnario sales taxes go up, but prices go down so it evens out.
but you dont mention the paycheck in that scenario. if you suddenly have no taxes taken out you have a huge take home pay increase.
so the price of goods goes down, but then sales tax is added to make up the difference- but sales tax will have to go up a HUGE amount to make up for the giant increase in take-home pay AND the lower cost of the goods.