but gross pay is not gross outlay to an employer. Anyone who has ever met a payroll knows this. Gross outlay in terms of moneys paid out is at least 5% higher than gross pay.
I don't know what I think about "fair tax," with my exposure limited to one talk by Boortz on the way home from work one night -I have not read the book. However, the cost to employers is HIGHER than the gross pay..., just to get that point straight.
That is not the point. The point is how does the employer realize the $1.3 Trillion worth savings from the taxes the employee now pays. Without the employer seeing those savings, the employer can not significantly reduce his prices.
You are certainly correct that the employer's total cost of an employee is greater than the employee's gross pay. And all of the employer's portion of payroll taxes would be repealed by the Fair Tax Act.