Actually it looks like the economists figure for a takehome pay increase greater than 20% when only the employer's half of SS/Medicare tax is accounted for in price decreases.
Kotlikoff figures a real wage increases on the order of 19% in excess of the base income/payroll tax case.
Average take home increase for SSI, Pension and other transfer or annuity recipients = 0% ... with a range of 0; median of 0.
Average after-tax price increase = 23.5% ... with a range of 15% to 30%.
As always, your mileage will vary; you net gain/loss depends on who you are and what you buy.
Oh, and even Kotlikoff says that old-capital owners, and short-remining-life individuals get screwed.
Kotlikoff figures a real wage increases on the order of 19% in excess of the base income/payroll tax case.AFTER 100 YEARS! That's one of those details the AFT (and you) seem to forget to include. The first year, Kotlikoff shows a real wage decline. And these are the closed economy results (no foreign capital), the last I checked the U.S. was an open economy. The open economy results show real wages increasing 11% by 2100. The first year they decline 1% and after 16 years they are only 5 percent larger.
"In implementing the FairTax we also impose an 18 percent permanent cut in government purchases of goods and services starting in our 2004 base year."