And if the prebate is not spent but saved then it is not taxed so your point is meaningless as one cannot presume if will be spent and as I said the fact of doing so biases the Calculator and does not fulfill the purpose it was designed for - which was a comparison on an apples and apples basis of the effective tax rate when the same level of spending occurs.And if it is not spent IT HAS ABSOLUTELY NO VALUE. The government might as well send out Monopoly money or just not send it at all.
"And if it is not spent IT HAS ABSOLUTELY NO VALUE. "
See #569.
From the Kotilkoff et al paper:
"Nominal federal transfer payments TR that are not taxed under current law must remain high enough to command the same goods and services under the FairTax as they do under current law."