My belief is that prices will first be reduced by some amount and after that will rise but by an amount far less than the marginal FairTax rate of 23% ti. The most they would rise would be at the overall effective FairTax rate for all taxpayers combined which would be much less than the marginal FairTax rate. IOW Kotlikoff's assumption of prices rising by the marginal rate is far too pessimistic and will not happen. In fact, prices cannot rise by that much overall and due to the effects that will show up in dynamic scoring, they won't.
The assumption in the Kotlikoff paper being discussed is that prices will rise by the FairTax amount. My belief is that prices will first be reduced by some amount and after that will rise but by an amount far less than the marginal FairTax rate of 23% ti. The most they would rise would be at the overall effective FairTax rate for all taxpayers combined which would be much less than the marginal FairTax rate. IOW Kotlikoff's assumption of prices rising by the marginal rate is far too pessimistic and will not happen. In fact, prices cannot rise by that much overall and due to the effects that will show up in dynamic scoring, they won't.You're not making sense [shock!]. It's obvious you didn't understand what Kotlikoff was saying.