[Gabz]

Why in heaven's name would an employer drop wages?

The way I am understanding this the employer will actually be laying out less money by not having to pay all the insidious taxes on the wages.

It seems wages would at worst stay the same or go up depending upon the employer. If I were the employer and given the choice of the current system, or not dealing with it, I'd give my employees the difference.

[Your Nightmare]

Why in heaven's name would an employer drop wages?

The way I am understanding this the employer will actually be laying out less money by not having to pay all the insidious taxes on the wages.

The taxes employer's pay are nowhere near the amount required to drop prices >20%. To drop prices that much you would have to reduce wages by the amount of payroll/income taxes that the employees were previously paying, ie. take home pay stays the same.