"There is also the employer share of the payroll tax. Virtually every economist believes this is borne by labor through lower wages,..."
Maybe I'm missing something, but if labor bears the payroll tax with lower wages, how does removing the payroll tax drive a wage decrease?
Maybe I'm missing something, but if labor bears the payroll tax with lower wages, how does removing the payroll tax drive a wage decrease?It doesn't by itself, but we are talking about eliminating much more than the employer share of the payroll tax. The employer share of the payroll tax is less than 3% of the FairTax base + exports.