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For those keeping score, Dr. Dale Jorgenson, of Harvard, found in his study that retail prices would fall 22% after the abolition of the income tax and adoption of a consumption tax, assuming that all employees would keep their net, after tax income. Arduin, Laffer and Moore Economietrics, Inc. concluded that prices would fall 11.25%, assuming that all employees kept their gross before tax income.

The truth is it would probably fall somewhere between the two. It's hard to see the average American losing at either extreme. I'll keep looking for links to both studies, if available online.

For those keeping score, Dr. Dale Jorgenson, of Harvard, found in his study that retail prices would fall 22% after the abolition of the income tax and adoption of a consumption tax, assuming that all employees would keep their net, after tax income. Arduin, Laffer and Moore Economietrics, Inc. concluded that prices would fall 11.25%, assuming that all employees kept their gross before tax income.
The truth is it would probably fall somewhere between the two. It's hard to see the average American losing at either extreme.
Really? paying taxes from what used to be aftertax income isn't losing? Do you every buy anything imported?

Why do all of you Fairtaxers think everything is produced domestic?...There wouldn't be any price reductions on imports as a result of passing the Fairtax and frankly, other than wishful thinking at AFT, there's nothing anywhere that says there would be price reductions.

assuming that all employees would keep their net, after tax income

So the 100% paycheck is a Fairtax lie.

Arduin, Laffer and Moore Economietrics, Inc. concluded that prices would fall 11.25%, assuming that all employees kept their gross before tax income.

THis is what makes more sense to me. I don't think employees will accept a cut in contractual pay.