[Always Right]

Jorgenson did indeed include the assumption that states and localities conform to the FairTax methodology, but only for assessing the impact of the FairTax on the economy.

Well Jorgenson conveniently assumed that all taxes would be removed from the cost of the product and therefore price would stay the same because wages would fall. Under Jorgenson wrong assumptions, the current level of taxes would be sufficient. So his analysis has great shortcomings since there is really no way to reduce everyone's wages by the taxes they currently pay.

[lewislynn]

So his analysis has great shortcomings since there is really no way to reduce everyone's wages by the taxes they currently pay.

He had to do that to get the results AFFT was paying him to get.

[Dimples]

Well Jorgenson conveniently assumed that all taxes would be removed from the cost of the product and therefore price would stay the same because wages would fall.

And Kotlikof makes the same assumption:

"Private consumers would receive lower (gross) wages under the FairTax, because producer prices fall." Page 23.

Some things never change.