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Considering that we can't even get most people to agree that the Laffer Curve exists, and that to a point tax rate cuts increase revenue through growth...

And considering that our government uses static models in predicting effects of tax law changes because dynamic models are too risky evne though there is plenty of data to allow its use...

And considering that our own budget deficit estimates under a fairly fixed set of laws and conditions fluctuate wildly over time...

The entire Fair Tax movement appears to be a very risky scheme from any rational point of view. We do not tolerate these high levels of risk and we are in the middle of a world war that needs to be financed to boot. I think this whole exercise is a huge waste of time.

It is not going to happen, it will let Neal Boortz add "NYT Bestselling Author to his official bio". I am beginning to think that is his motivation.

So I guess the Berlin Wall is still standing, we never went to the moon, we are still a British colony and Reagan's tax cut's didn't work. Too risky. Better just go hide under the bed. We don't tolerate these high levels of risk.

So, I guess you WERE just yanking our chain.

And considering that our government uses static models in predicting effects of tax law changes because dynamic models are too risky evne though there is plenty of data to allow its use...

RobFromGa, here is a link to a version of the Dale Jorgenson & Peter Wilcoxen paper Boortz mentions as the source (his book is very poorly sourced) for the supposed price drop. You can review it for yourself and determine how reasonable you think it is. Although it's not mentioned in the article, in the calculations for the model, the cost of labor goes down as the personal income & payroll taxes go down. That should tell you something about what's happening to wages in their model.

Notice how their model has the labor supply increasing 30% the first year. I don't know about you, but that doesn't seem that reasonable to me. You might take a look at "Dynamic Tax Models: Why They Do the Things They Do" by Eric Engen, Jane Gravelle, and Kent Smetters. It gives a good overview of tax models and why some behave different than others.