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I'm beginning to agree with the economist YN cited.

The technical term for what we are discussing is "marginal product of labor," how much output does a business get from an additional unit of labor. Falling prices reduces the marginal product of labor and changes the wage bargain (I'm paying you $X for $Y amount of output). If I'm paying you $8 for $10 worth of output and prices drop where your output is only worth $7, I can't keep paying you $8 and make money. Our informal wage bargain needs to be renegotiated.

This works perfectly efficiently and instantaneously in full-employment computer models like Jorgenson's, but of course, in the real world, wage bargains can't be renegotiated that easily and without great displacement of labor (ie, unemployment). So the prevailing thought is the Fed will work with the money supply to keep prices from falling and keeping the marginal product of labor consistent.

I have a FICA question as it relates to the NRST. (Set aside federal income tax.)

If I am self-employed, I send the government the entire 12.4%. Under the NRST, I keep the 12.4% and can give myself a 6.2% raise? (The 6.2% deducted from each paycheck would be returned, plus the company contribution of 6.2% is returned to the company to do with at it sees fit?)

Now, how does this work if I am employed by a major corporation? Do I get the entire 12.4%?