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"My original point was that I have come to believe that you can't have a large drop in prices with the NRST without a drop in wages"

Sure you can.

LEVEL 1
Price 115
Cost 100
Pre-tax Profit 17 14.8%
Tax (30%) 5.1
After Tax Profit 11.9 10.35%
Tax (Cum) 5.1 4.43%

LEVEL 2
Price 135.5
Cost 115
Pre-tax Profit 20.5 15.1%
Tax (30%) 6.15
After Tax Profit 14.35 10.59%
Tax (Cum) 11.25 8.30%

LEVEL 3
Price 159.5
Cost 135.5
Pre-tax Profit 24 15.0%
Tax (30%) 7.2
After Tax Profit 16.8 10.53%
Tax (Cum) 18.45 11.57%

That is 11 1/2% based on corporate income taxes alone going only 3 levels deep in the supply chain. Many manufactured products go much deeper than 3 levels. This does not even count compliance costs, which under the current system are staggering, nor the employers portion of payroll taxes.

Sorry I couldn't get the columns to line up.

Good example, but what if you took it the other way? Examine the cumulative savings of tax on the final purchaser of a bicycle perhaps?

phil_will1, if your theory and math are correct, then corporate income taxes would be a large percentage of prices. Guess what? In 2001 they were less than 2% of the FairTax base + exports ($189 billion in corporate income taxes). So there is obviously something wrong with either your theory or your math or both.

LEVEL 1
Price 115
Cost 100
Pre-tax Profit 17 14.8%

Sorry about the math error. If the price were changed to 117, the pre-tax profit margin would be 14.5%.