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What it really shows is that Dr. J. assumes the workers will get only their after income tax pay. There is obviously a difference of opinion as to the matter; that is not the same thing as a misrepresentation as the Squirrels like to claim. I haven't yet decided which approach is correct but that has no effect on the benefits of the FairTax to the economy overall.

The Boortz/Linder book clearly sells the plan as being one where all wage earners would realize an immediate gain in purchasing power. This is an impossible "free lunch" plan when it is described that way. Dr. Jongenson confirmed that he was NOT modelling a "free lunch" plan.

Perhaps the misrepresentation is inadvertent and caused by ignorance, I do not know. I do not allege malice. But now that they have been made aware of the error, they must take some action to correct the wrong explanations that they have given in their book.

As I have said many times, my interest in this is to discuss the FairTax plan honestly as it was intended to be implemented and then decide whether it is a good approach or not.

You, pigdog, appear to still cling to your dreams of the "free lunch". Face the facts, pigdog, without the worker payroll and income taxes reduced from a businesses costs, there is nothing else to get an immediate reduction of more than about ten percent-- tops. And it could be as low as 7-8% savings.

It could very well be much more than 10%. There is no reason why not. If you are a very wealthy individual and you are old, you may spend 100,000 dollars a year in life insurance premiums to preclude a 10 million dollare hit on your estate when you die.

There are millions of people in that situation. We don't really know. Imagine the life insurance industry: it is all predicated (as far as sales to big ticket clients) on the fact that the cash value build up is tax deferrred. And when you start taking money out it is a LOAN so the IRS doesn't tax it. So individuals must no longer pay those huge life insurance premiums to protect their estates.