Well, you haven't broken this down into how much was wages and salaries with the 7.65% savingsWhat makes you think there would be a 7.65% savings on wages and salaries?...
Where is it written that the payroll tax paid on the employee's behalf won't be given to the employee where it belongs?...Especially when the Fairtax rate would be determined by Social Security bureaucrats based on 15.3% of the Social Security wage base.
`(d) OLD-AGE, SURVIVORS AND DISABILITY INSURANCE RATE- The old-age, survivors and disability insurance rate shall be determined by the Social Security Administration. The old-age, survivors and disability insurance rate shall be that sales tax rate which is necessary to raise the same amount of revenue that would have been raised by imposing a 12.4 percent tax on the Social Security wage base (including self-employment income) as determined in accordance with chapter 21 of the Internal Revenue Code most recently in effect prior to the enactment of this Act. The rate shall be determined using actuarially sound methodology and announced at least 6 months prior to the beginning of the Calendar year for which it applies.Add them up, it's 15.3% not 7.65%...`(e) HOSPITAL INSURANCE RATE- The hospital insurance rate shall be determined by the Social Security Administration. The hospital insurance rate shall be that sales tax rate which is necessary to raise the same amount of revenue that would have been raised by imposing a 2.9 percent tax on the Medicare wage base (including self-employment income) as determined in accordance with chapter 21 of the Internal Revenue Code most recently in effect prior to the enactment of this Act. The rate shall be determined using actuarially sound methodology and announced at least 6 months prior to the beginning of the calendar year for which it applies.
You really are confused. You need to stop reading only every third word and read what the bill actually says.
"... same amount of revenue that would have been raised ..."
has nothing to do with where the money comes from. It is strictly a guarantee that SS and Medicare will still be funded -- but from general revenue instead of a separate special employment tax.
The employment taxes are finished, eliminated, don't exist anymore. There is no way for the givernment to force employers to give employees money that was never paid by the employee and never counted as compensation to the employee. Employers will continue to pay their employees their contractually agreed upon gross wages, period. Which means the employer see a COST for the employee 7.65% lower than it was before.
If you can't make an intelligent statement, you should just keep quiet.