Wages going down was not a prediction of the study despite what you try to pretend.
Nor, in fact, was there any indication that actual labor costs would go down at all - let alone by the full amount of the payroll tax. What you're hanging your hat on is what he used for the premise of his model, not a prediction or actual indication of what would occur with labor.
And misrepresenting ... you Squirrels have been misrepresenting the FairTax in many respects since you came on these threads so I doubt you'll suddenly stop.
Part of the problem is the way Boortz and Linder are using the idea of embedded taxes. In an eight-year-old study paid for by AFFT, Harvard economist Dale Jorgenson noted that because the taxes paid by everyone in the chain of production are embedded in the cost of goods, prices could decline an average of 20 percent if all those taxes were scrapped. The FairTax Book devotes an entire chapter to this idea.
What The FairTax Book fails to mention is that prices can only fall this sharply if companies cut wages. I asked Jorgenson about this, and he agreed. Say your salary is $100,000 a year today, but you take home $80,000 after taxes.
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And he is the fairtax expert according to fairtax.org. Here is a paper at the fairtax.org website.
The FairTax – Are there winners and losers?
From footnote #1: More than $2 million dollars has been invested in economic research by FairTax advocates to determine the impact of the FairTax on the economy, business, and individual taxpayers. The FairTax research team includes some of the leading economists in the country: Dr. Dale Jorgenson, Chairman of the Economics Department
Wages going down was not a prediction of the study despite what you try to pretend.No, it was an assumption made by the economists developing the model. They assume that producer prices can't drop unless gross wages drop. Every economist I've read (including Kotlikoff) assumes this.