I think it shows more than that, it means the Jorgenson was realistic in that the income and FICA taxes "saved" by the wage earner would revert to the "producer" (his employer) to enable the producer to cut costs.
Of course this is the only way that the FairTax makes any sense financially, but it is good to see that Jorgenson stated clearly to Congress what he meant by where the producer price savings would come from. Maybe that is why he is no longer on board?
You don't see recent quotes from Jorgenson. I would bet Jorgenson's contract with the Fair Tax organization prohibits him from making negative comments. I think Jorgenson may still be a support of the idea, but I can't imagine that he supports such a misrepresentation.