"the part about wage reduction was a question as to whether the tax costs not only affect price but also affect wages... since we have to compete price-wise with subsidized imports, maybe some of the domestic tax costs are paid via wage reductions?"
Well, I'm not sure I have ever heard that (non-payroll)tax costs may affect compensation levels. There has been considerable debate on these threads relative to whether the employer's portion of payroll taxes, if eliminated, would be reflected in higher wages or in product pricing reductions. I suppose you could argue that one either way and it is probably a mixed bag in the real world.
thank you.
btw do you have link/source for the 22% "embedded" tax?