I am not paying any of my employees anymore.
I hope you're joking. Why wouldn't you pay your employees?
The higher salaries will make it more difficult for my company to be competitive.
If you employees are working for you then you have to pay them. You can talk about giving them a lower wage, however simply refusing to pay them should be against the law.
I can pay them whatever I want. I can just not feed them anymore and make them work.
If you don't pay your employees, they will just leave you and you'll have no one. Your business will fail. If you can't afford to pay employees, than you shouldn't have a business.