According to your own posts, PIT is incident on employee, not in pricesDo you agree?
As for payroll taxes, there are two parts. ONe part is incident on employee, the other in prices.Who says the second is in prices?
Well, which one(s)?Payroll and personal income taxes. That's the only way you can get the price drops that are being claimed. Even the authors of the FairTax understand this.
Response to William Gale
by Dan Mastromarco and David Burton
[authors of the FairTax]
Memorandum, March 16, 1998Federal income and payroll taxes either are or are not incorporated into the prices of goods and services. If they are embedded in prices, their removal will reduce prices. If they are not, then their removal will not reduce prices but instead returns to labor and capital will go up. If returns to labor go up, people will see their after-tax wages increase and asset values will increase since the present discounted value of the new, higher returns will be higher.
The replacement sales tax could be incident on the factors of production or it could be incident on consumers through higher prices. It cannot be both. If it is incident on the factors of production, then wages and the return to capital will fall but sales tax inclusive prices will not be any higher, on average, than they are today. If the sales tax is fully incident on consumers, then prices will increase by the amount of the sales tax but returns to labor and capital will be higher.
So you don't want to answer. This is where it always happens.