But if payroll runs 35% of your gross, that means the payroll savings is only 3% of the gross. And nobody is going to waste time lowering prices for a 3% (or even 8% change in costs) when they don't know how their customers are going to react to paying the 30% sales tax surcharge.
"... and if wishes were horses then balrogs would ride ..." but as it is they just throw up misinformation and fall flat on their faces.