“You’re assuming that when the 22% of hidden taxes is removed, all this money will be added to the employees paycheck?
Some will be added to the employees’ paycheck. It will have to be. As the economy takes off, there will be MANY more jobs. Eventually companies will have to offer more wages and benefits to attract workers.
Some will be taken off the retail price of items, off-setting the pain of the 9% sales tax. This WILL happen as companies like Wal-mart drag the prices down with a quickness.
Some the companies will keep, as PROFIT. Stocks will go up, benefiting retirees and anyone else with a 401K.
Working people, shopping people and retired people will ALL win.
I agree that it should. With a lower corporate income tax, no more FICA (7.65% employee and 7.65% employer), plus lower employee federal income tax withholding, take-home pay should increase by at least 18%.
But there's nothing to prevent the employer from keeping this money as profit or passing it on to the shareholders.