Hence the view some economists have that wages would have to drop if prices drop.
Hence the view some economists have that wages would have to drop if prices drop.There is also the employer share of the payroll tax. Virtually every economist believes this is borne by labor through lower wages, but if we assume for the sake of discussion that they in prices:
FairTax Base: $7,904 billion Exports: + $1,034 billion ================================== TOTAL: $8,937 billion Corp Inc Tax: $ 151 billion Corp Payroll Tax: $ 253 billion ================================== TOTAL $ 403 billion 403 / 8,937 = 4.5%