[Chilldoubt]

If I lower my service price equal to what my income taxes were, what happens...
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you will collect the sales tax from the buyer - so your prices remain constant to the buyer -...

...what happens when I pay the new federal tax on what I spend?

you will be paying the same prices when you spend money -

[Your Nightmare]

you will collect the sales tax from the buyer - so your prices remain constant to the buyer -...

No, he only pays taxes on his profits. Even if he had a 20% profit margin and paid 33% total effective tax rate, the most he could drop his prices due to taxes is < 7%.

Relative prices would not stay the same. There is no legitimate source that says they will.