Hardly,
Half of payroll taxes are paid by the employer from his gross sales revenues on wages he pays to employees.
Title 26 US Code Subtitle C Sec. 3111. Rate of tax
- (a) Old-age, survivors, and disability insurance In addition to other taxes, there is hereby imposed on every employer an excise tax, with respect to having individuals in his employ, equal to the following percentages of the wages (as defined in section ) paid by him with respect to employment (as defined in section )— ***
- (b) Hospital insurance In addition to the tax imposed by the preceding subsection, there is hereby imposed on every employer an excise tax, with respect to having individuals in his employ, equal to the following percentages of the wages (as defined in section ) paid by him with respect to employment (as defined in section )— ***
Half of payroll taxes are paid by the employee out of gross wages received.
Title 26 US Code Subtitle C Sec. 3101. Rate of tax
- (a) Old-age, survivors, and disability insurance
In addition to other taxes, there is hereby imposed on the income of every individual a tax equal to the following percentages of the wages (as defined in section (a)) received by him with respect to employment (as defined in section (b)) - ***
- (b) Hospital insurance
In addition to the tax imposed by the preceding subsection, there is hereby imposed on the income of every individual a tax equal to the following percentages of the wages (as defined in section (a)) received by him with respect to employment (as defined in section (b)) - ***
The SS/Medicare excise employers that is repealed is a reduction in costs on the employer and releases funds for reducing prices to optimize sales for optimum profit in competitive markets.
The SS/Medicare tax on income employees pay out of their wages is repealed by the NRST, and will no longer be withheld out of there gross wage due them.
Then your hired gun economists tell us all taxes are embedded in the cost of goods, this includes the payroll tax that you already accounted for as being paid by the employee.
Once again wrong, only the employers excise and business income taxes that are repealed with the lower tax relateed overhead costs that result in repealing those taxes are credited toward any reduction in prices.
If the employee is counted as paying his taxes and gets to keep that money,
He does, as that is indeed a contractual wage for an overwhealming majority of folks.
then much of the so-called embedded costs will still be in the costs and prices will not come down nearly as much
The reduction in prices comes from lower business taxes from repeal of business taxes, and lower tax related overhead costs that are associated with minimizing & avoiding, accounting and reporting, research, litigation and legal costs, costs all associated with the federal income/payroll tax system that businesses are now burdened with.
as your paid for whores say they will.
adhominen when nothing substantive to say I see.
If you assume all taxes are embedded (which is the only way you can claim a 20-30% embedded costs),
No producer prices can fall by 20-30% as a consequence of lower tax related costs, no tax on business, increased productivity as resources now expended in economically sterile execises are release to productive use.
then you can not simitaneously tell us that employees get to keep all most of their payroll taxes.
The employee certainly can and will get to keep all of the payroll tax he now is liable for:
Title 26 US Code Subtitle C Sec. 3101. Rate of tax
- (a) Old-age, survivors, and disability insurance
In addition to other taxes, there is hereby imposed on the income of every individual a tax equal to the following percentages of the wages (as defined in section (a)) received by him with respect to employment (as defined in section (b)) - ***
- (b) Hospital insurance
In addition to the tax imposed by the preceding subsection, there is hereby imposed on the income of every individual a tax equal to the following percentages of the wages (as defined in section (a)) received by him with respect to employment (as defined in section (b)) - ***
As that tax will be repealed.
Employees must take a pay cut or their model is bogus.
Or the alternative is that your representation is totally bogus. And the Employee keeps there full contracted gross wage as it shows up on their pay stubs with no withholding for federal income or SS/Medicare taxes either one.
For an employee's gross wage on the pay stub is not only a contractual commitment between employer and employee, business costs and taxes fall as a result of repeal of the federal income/payroll tax system, just as the individual in no longer required to pay federal income or payroll taxes he is liable for today.
Pure BS. Give me some numbers. Business taxes are under $200 Billion. One-Half of FICA/Medicare is another $350 Billion. The other crap is just exaggerated fluff. If you are lucky, the fair tax might save $100 Billion and that is being generous. That only brings us to about $650 Billion in savings for Businesses. That will result in an 8.1% reduction in the costs of goods, which comes no where close to the 30% tax you are adding on. Certainly income will go up for those making money, but those on fixed incomes are absolutely SCREWED.
Half of payroll taxes are paid by the employer from his gross sales revenues on wages he pays to employees.That speak nothing of the incidence of that tax. The ideas on pricing coming from FairTaxers is laughable.