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?
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?
I thought I was fairly clear, wages must go down by the amount of taxes you pay. If you make $1000 and take home $700, you pay would have to go down to $700. Otherwise businesses would not be able to stay in business at the current prices.