Income- discussed, returned to wage earner, 0% saved by business
Employment- discussed, 7.65% returned to wage earner, 7.65% retained as cost savings
Self-Employment- discussed, 7.65% returned to wage earner, 7.65% retained as cost savings
Excise- not part of FairTax replacement, 0% saved by business
Hidden or Embedded- these are a fantasy of the FairTax movement, they were originally defined as the sum of all the income and payroll and corporate taxes above, but since these have been removed from the deinition no one knows what these "Hidden" taxes are any more. No businessman has a clue where these are, or how they are going to be eliminated. They are a figment of the FairTax imagination.
From FairTax.org
Exactly what taxes are abolished?
The FairTax is replacement, not reform. It replaces federal income taxes including, personal, estate, gift, capital gains, alternative minimum, Social Security, Medicare, self-employment, and corporate taxes.
Is your example an C corp again? The C corp I work for paid nearly $300M in US Federal Income Tax in FY 04. It would sure be nice to simply add that to the bottom line, but knowing the competitive pressures in our market, I am convinced it wouldn't be possible. If your example is a C corp and taking 50k in salary with an effective rate of 15%, he's getting about $7500 increase in take home by eliminating the income tax.
Self-Employment- discussed, 7.65% returned to wage earner, 7.65% retained as cost savings
You again ignore the 15% of 50k, or $7500 in self employment tax that the S corp owner in your example will add to his take home. It is not "retained" unless the owner chooses to leave it in the business.
Hidden or Embedded- these are a fantasy of the FairTax movement,
I suppose you are like many, usually Union Democrat types, who think you can actually "tax" a corporation.
News Flash! You can't really tax a corporation. It is impossible. You can tax the stockholders of a corporation. Or you can tax the customers of a corporation. But you can not tax a corporation because it is only a legal entity and it has absolutely no assets to tax. Every penny in so-called corporate assets in reality belong to people. Those people will in most circumstances simply pass the tax burden along to their customers in the form of higher prices. When you add margin targets to higher prices through each step in the supply chain, there is without a doubt a cascade effect. If you do not believe that to be true, you must believe that no one is actually paying corporate taxes in the first place.