The problem is that is not how it works in the real world. In the real world there is no mechanism to reduce the wages from $100K to $80K, so wages stay at $100K. Well you say, what is wrong with that? That means prices can't come down nearly enough to offset the tax. After tax, prices have to rise about 20%, which is fine for all those people earning income because they are taking home more money. But for people who are retired, they have just seen the purchasing power of their next egg drop 20%. Huge problem for retirees.
So my boss couldn't pull me into his office and say, Phantom, we are reducing your salary to $80K a year starting tomorrow? That mechanism doesn't exist?