I dont know. They are the ones with the Masters and Doctorate degrees
Tax compliance is accounting (that won't end) and for a small business it's simple accounting and a turbo tax program.
What percentage of accounting is done purely for the purpose of retaining records needed for doing taxes(including payroll taxes).
According to the fairtax people, payroll taxes would be paid directly to the employee (no savings there) and wages and self-employment income would still be required to be reported to Social Security...no "compliance" savings there either.
All payroll taxes go away,both the employee and employers share, big savings no?(look at that savings added up for a raw material-finished product process that may include 3-5 seperate companys)
The only way they could reduce prices 20+% would be to retain employee's withholding (income and payroll taxes).
Guess what? You're getting there. THERE ARE NO INCOME AND PAYROLL TAXES.Those dissappear completely from the cost of their product. Some people fear that businesses would keep that as profit but competition will drive that out of the price of the product. ONE company is all it takes in a business segment to reduce the price of the product by that amount and they are all forced to do it.
Grade school math and simple logic.
Indeed.
That's exactly what I wrote before..The only way prices could be reduced even 20% is if the employer retained the employee's withholding and did NOT pass the employee's income and payroll tax on to the employee who earned it.
Your dreamland scenarios are interesting but no one has been able to prove how it can happen...not even the one with the doctorate... unless you can post that part of "the study" which shows up to a 40% reduction you claim exists..
Besides that, there isn't anything statutory that says the employer has to reduce prices OR pay the employee "100% of his/her paycheck".