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To: Always Right
Why do you think that an employee who accepted a position for $62,000 annually would expect to have the employer's share of FICA ($4750) added to $62,000 for a new annual salary?

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.

506 posted on 02/16/2005 8:39:08 AM PST by Principled
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To: Principled
The employer and employee have agreed on $62,000.

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.

510 posted on 02/16/2005 8:43:42 AM PST by Always Right
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