What your post describes is actually a reduction in costs of the goods. If the cost is reduced, then either the profit margin is increased or the price is decreased (profit remains constant). Generally, in free, competitive markets the price will fall to gain market share. I can imagine some monopolistic industries where the prices would not fall, but most business is subject to competition that will force prices down.
Actually the question is how can that reduction in the costs of goods be caused by elimination of income taxes? I'm beginning to believe that prices will not fall much when embedded income taxes are removed from the pipeline of goods and services.
Which leaves me reading tea leaves again. If prices don't fall the immediate effect will be a 30% increase in prices of every thing except used goods. First year there will be a huge tendency to buy used goods over and above the first 15-20 thousand of the pre-bate. A sudden sharp decrease in consumer spending could be temporarily disastrous. Also, it would create a huge deficit at treasury. Of course, all of this can be dealt with by phase in or other means.
I still think the long term benefits of a NRST outweigh the negatives.