[Always Right]

So my boss couldn't pull me into his office and say, Phantom, we are reducing your salary to $80K a year starting tomorrow? That mechanism doesn't exist?

You think union thugs are gonna take the pay cut? There will be some downward pressure on wages, but that is a longer term effect. The immediate effect is an instantaneous 20% inflation spike due to the fairtax. What happens longer term is crystal ball stuff. Most likely people will just live with the new prices and keep their current wages. Seniors are then royally screwed.

[RobFromGa]

I asked Linder “What about government salaries? You control those, will they come down or stay at current gross?” His response didn’t have an answer.

[Phantom Lord]

You think union thugs are gonna take the pay cut?

Thats a little different than your claim that there is no mechanism available to do such a thing.

[GregoryFul]

Agreed. Lots of wages are set by contract. They are not going to change. In my experience, non-union employees wages are set by comparison to union contracted wages. All hell will break loose if a company determines to drop engineers' wages, while keeping janitors wages' the same. Lots more future union forming activity at least, perhaps more ill-designed widgets in the short term.

I will expect to be paid my full salary, with no FICA and no SS or medicaid deductions. And I would expect that the additional SS payroll tax paid by my company for my labor would also be returned to me; since we are changing the way we are being taxed.

None of the fallout is clear in the proposal. If the changeover were to be phased in over 20 years or so, or started as an experiment in one or two states, it would be tolerable, and recoverable. But as proposed, it is a MOAB in the economy, and nobody knows its fallout.