The employer and employee have agreed on $62,000.
Of course the employer may choose to give him a raise with the $4750 savings, or choose to lower prices with the $4750 savings, or choose to improve ROI with the $4750 savings... or he may spread the $4750 out among some or all of those areas.
Exactly. So how do I lower the costs of my goods if I am still paying my employees the same. In order for your program to work out so goods stay the same, the employer is the one who needs to see all the savings from the elimination of income taxes. Otherwise there is no way to pass the savings to the customer. Take home pay for employees go up, but so do prices.