[Always Right]

Too bad Rob's email answer was referring to Jorgenson's testimony describing a generic consumption tax system designed to replace income taxes only.

Well then why have the fairtaxers been using that Jorgenson quote for the last 10 years.

[xcamel]

Nice to see more real economists starting to emerge from their bunkers and speak out against this huge fraud. The fair taxers are getting to be like the mob with torches rakes and forks chasing after Frankensteins monster, while the rest of us who actually work for a living and provide a benefit to society work tirelessly in the background to get true tax reform based on enforcing constitutionally limited government spending, and a fair, Flat Tax

[ancient_geezer]

Well then why have the fairtaxers been using that Jorgenson quote for the last 10 years.

Perhaps you would like to point out the precise "Jorgenson quote" in the '96 tesitmony to which which you suggest is being used.

It is understandable that replacing all payroll taxes (i.e. SS & Medicare) as well and implementing a sales tax rebate to all legal residents as the Fair Tax Act HR25 does would improve performance even more. This is especially true considering that Jorgenson's simulations make no provision for removal of the cost burdens of tax compliance, legal and audit costs, or of tax planning and implementaions of tax avoidence mechanisms at all.

The only thing I see in his '96 testimony (to which his statements to RobFromGa refer) is a reduction in producer prices. Testimony in which he makes no mention of any effect with regard to wages. In other papers and studies he suggests lower price to the consumer combined with the tax producing an overall increase in consumer purchasing power of 3% in the first year rising to 10% in out years through an implementation of NRST replacing only income taxes.

Replace both income and all payroll taxes, add provisions for sales tax rebate, as is easily perceived the potential for even better results will be substantially increased.