As part of any legislation to eliminate income tax, there needs to be a law prohibiting or minimizing the reduction in wages. I think both employers and workers should benefit from this change, but I suspect that without regulation, many will take advantage to simply reduce actual wages overall.
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Anything to keep a companies stock price up. They will in response probably give people an option, take massive pay cuts or be laid off... after of course they train one of those unemployed college grads on the way out the door.