Kotlikoff et al throughout the paper actually take the opposite position that wages remain the same and prices rise by the full FairTax amount. Actually, neither assumption is probably going to be correct in the long run since what will most likely occur is that prices will fall a certain amount with the elimination of the income tax and then be raised by the overall effective FairTax rate for all taxpayers combined.
IOW, this price rise will be much less that the marginal 23% FairTax rate just as the effective FairTax rate is much lower than the marginal.
The more important point, though, is not the action of prices per se, but purchasing power. As has been shown repeatedly on these threads by actual examples, for a given level of income the taxpayers purchasing power (disposable personal income) is usually greatly increased under the FairTax as opposed to the income tax.
Actually, neither assumption is probably going to be correct in the long run since what will most likely occur is that prices will fall a certain amount with the elimination of the income tax and then be raised by the overall effective FairTax rate for all taxpayers combined.Prices are going to rise by the effective rate? Really...
What your FairTaxer exercises show is increased purchasing power within certain FairTax parameters. Without knowing how much prices will fall, what an employee's take home pay will be, what bite tax evasion will take out of predicted revenue, or how much state and local government will have to raise taxes to pay the federal FairTax, your "actual examples" are the product of wishful thinking.