Wage earners pay 7.65% of wages in FICA. The employer has to pay an equivalent amount out of the employer's funds.
The portion paid by the employee will no longer be withheld - so he'll see a bigger check.
THe portion paid by the employeer will no longer be collected either.
The employee sees a 7.65% raise.
The employeer sees a 7.65% of wages reduction in costs.
Do you really own a business?
You obviously don't comprehend one word of the paper written by the authors of the fairtax when they used the example of a couple whose income "under the fairtax will increase" the amount of the employer half of the payroll tax. Otherwise I don't understand your endless attempts at trying to make liars out of AFT, Dan R. Mastromarco and David R. Burton the authors of the fairtax bill.
[26] If the $47,129 of our family's income was all wage income, then that couple would have paid $3,605 in employee payroll taxes on those wages. Note also that their wages were also about $3,605 lower because of the employer payroll tax......-----
[28] Under the AFT Fair Tax plan, their disposable income will increase to $50,734 because of the repeal of all payroll and income taxes.
Under the AFT Fair Tax plan Their income WILL increase ($47,129+$3,605[employer half]=$50,734) because of the repeal of ALL payroll taxes.
Not maybe if the employer decides but WILL.
Get it?...