Are you including the share of SS that the employer contributes out of sight of the employee? So, an employees wage would be something like (net pay + tax = gross pay + employee matching (ss+tax match) = total wage)?
If so, I might better understand your wage decrease statement. If not, clearly I'm still confused.
Are you including the share of SS that the employer contributes out of sight of the employee? So, an employees wage would be something like (net pay + tax = gross pay + employee matching (ss+tax match) = total wage)?I think (I could be wrong) most economists include the employer portion of the payroll tax in nominal wages because it is part of the "wage bargain" (I am going to pay you X for Y output). I believe they also include other benefits like insurance.
If so, I might better understand your wage decrease statement. If not, clearly I'm still confused.