[ArGee]

The payroll tax employers pay is entirely based on what they withold from your check.

Sorry for this late response. Let me try to rephrase my point.

I believe the payroll tax is paid entirely by the employer, not witheld from my paycheck. Is that not the case? Ancient Geezer has already said the fair tax plan eliminates the payroll tax.

Shalom.

[Always Right]

I believe the payroll tax is paid entirely by the employer, not witheld from my paycheck. Is that not the case? Ancient Geezer has already said the fair tax plan eliminates the payroll tax.

Social Security taxes withheld from the employee check are matched and paid for by the employer. That amounts of 7.65% of payroll, and represents a $350 Billion savings to businesses if eliminated. That is the biggest savings businesses will see from the fair tax and amounts to about 3-4% of the costs of goods. In total, the fair tax will save businesses about 6-7% of costs to businesses, but then businesses will have to add a 30% to goods and services. The end result is prices will go up by 15% or more.