[Always Right]

A pretty good analysis, although not completely fair to the fairtax. Much closer to the truth than the fairtax analysis, but they don’t take into consideration several things. There will be some cost savings to businesses that will result in the pretaxed prices coming down, but not nearly the 23% the fairtaxers have claimed. More like 5-8%. And in reality the fairtax numbers don’t assume 100% compliance since the statistics they use are based on numbers that include the non-compliance of the current system. Although the number of non-reported retail transaction is surely to increase.

[Principled]

I use 9% as a pre-nrst reduction. Derived by anti fairtaxers BTW :)

My claim is that the combination [any combination] of pre-nrst price reductions combined with wage increases and lower effective rates will result in a net zero change in purchasing power. That's what Jorgenson said BTW.

Further, I claim that any legal participant in today's income/payroll tax system will have increased purchasing power over the income tax system. That is, they will be able to buy more under the nrst than they would if the income tax continued.

Merry Christmas AR

[xcamel]

I don’t know how this suddenly caught the attention of so many people not normally involved with FT threads.. I actually turned in to a fairly civil and fun debate if there ever was such a thing...