[kevkrom]

the payroll tax is ~6.2% of employee wages (and most economists believe the employee actually pays for that through lower wages, not consumers through higher prices)

Works out the same, basically, either way. Either prices lower or wages increase -- the purchasing power for the same unit of work is roughly the same either way. Use whichever method you prefer, but be consistent, and the net result will be close enough regardless of the method.

[Your Nightmare]

Either prices lower or wages increase -- the purchasing power for the same unit of work is roughly the same either way.

But we aren't talking anywhere near 20%.