[Your Nightmare]

Omitting relevant portions of text and using your own comments to connote that the entire quote's meaning is different than it really is.

They weren't relevant. They don't change the quote's meaning in the slightest. This is the quote:

This sentence and the one preceding it assume the price level will rise with the adoption of the Fair Tax. If the Federal Reserve used its monetary policy to maintain the consumer price level, the adoption of the Fair Tax would entail a decline in the level of producer prices and, thus, the nominal wages and capital income received by productive factors.

How is that quote's meaning changed by what AG posted? Does it change Kotlikoff's belief that "If the Federal Reserve used its monetary policy to maintain the consumer price level, the adoption of the Fair Tax would entail a decline in the level of producer prices and, thus, the nominal wages and capital income received by productive factors"? No it doesn't.

If you think so, please explain in detail how it does. My suspicion is that you are only looking for excuses to discount the quote because it reveals the "FairTax Miracle" to be a lie.

[Principled]

...This sentence and the one preceding it ...

What about the rest of the context? Eh? You're going nowhere on this issue until you become honest.