No, just pointing out that businesses won't be forced by law to pay these taxes any longer. I'm not saying they'll keep FICA (nowhere near 10%, closer to 8% if they have a lot of high earners because of the Medicare part of the tax. Soc Sec taxes stop at $90K), they might be willing to pay more.
You mentioned it's "the employee's money" but it's not. It's benefit forced by law to pay into their Soc Sec and Medicare. These companies spend lots of money of private investments that do much more than these anemic, socialist programs. Which, franky, is why I don't politicians will touch this...the lacking of the match to those white elephants. But that's besides the point.
You still haven't defined how a business (S Corps, LLC or sole p's of course don't pay corporate income taxes. They pay individual income taxes on any profit realized which is even worse since they are on a "progressive" rate schedule while the corporate rate is flat) can "lower prices using embedded taxes".
And the plan isn't claiming a $1 loaf of bread will drop to $.77 overnight. They are saying prices won't go higher and could, and probably would, go down due to lower costs. And the extra tax is covered under the FCA.
But the bottom line is how are people wanting to be taxed. The income tax is a joke and everyone knows it. I don't pay a state income tax since we have only a sales tax and I pay far less than under any income tax proposal they keep trying to shove down our throats because I control my taxes through my consumption.
I also used 8% for FICA savings, I added a generous 2% for compliance savings.
And the plan isn't claiming a $1 loaf of bread will drop to $.77 overnight. They are saying prices won't go higher and could, and probably would, go down due to lower costs.
The plan, as defined by the Fairtax.org groupies and the #1 NYT bestselling FairTax Book, both claim prices on average will stay about the same (with FairTax included). If they didn't anyone on a fixed income, or with accumulated savings would see their purchasing power destroyed.
You still haven't defined how a business can "lower prices using embedded taxes".
My point is that they can't lower costs significantly, because there are no sigificant embedded taxes besides payroll and income taxes, which the FairTaxers claim will be returned to the wage earners.
The FairTax proponents are mis-representing what their economist, Dale Jorgenson said about employee wages. In his testimony before the Nouse W&M Cmte. he said that takehome wages would go down, and that would allow the businesses to reduce costs, so prices could go down.
The FairTaxers are telling us that the FairTax plan will allow every wage earner to get a 25%+ take-home pay raise and still pay (on average) the same for goods and services. THis is a lie.
Good post. There are more important things about a national consumption tax than what most of the SQL's are arguing about.