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To: Badray
How much as a pay cut do I have to take to be at the point where I would actually be worse off. You are the boss. Start cutting.

Theoretically, if everyone took a pay cut in the amount of taxes they paid, prices overall might stay the same. The problem then becomes many negotiated contracts like employment contracts, rents, and mortgages can not be changed, so theory is not possible. And the reality is some businesses and people will be better off under the new system ans aome will be much worse off,

1,226 posted on 06/15/2005 1:58:40 AM PDT by Always Right
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To: Always Right

What don't you understand about my question?

Or are you dancing around it?

In my scenario, prices are nailed to the wall right where they are. An act of congress, as the saying goes, will not budge them. You are claiming that wages must fall. You have the sole authority to set the new wages and you are cutting them. How much?

How much must they fall before the employee no longer has the same purchasing power as before the change in taxes structures? And if it only falls to that point (or just above) is the worker/consumer really disadvantaged?


1,227 posted on 06/15/2005 2:40:57 AM PDT by Badray
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