http://www.harvard.edu/And how many of these organization have done studies that confirm Jorgenson 22% drop in producer prices? Can you show me any other study that confirms it?
http://www.heritage.org/
http://www.mit.edu/
http://www.nber.org/
http://www.stanford.edu/
http://www.bu.edu/
http://www.cato.org/
No complete studies available on internet, addressing the FairTax legislation as it stands, that I can find.
Jorgenson represents the most comprehesive and complete study readily available that addresses the economic effects of the NRST. You want to find a more uptodate and more complete study go looking for yourself.
A drop in prices is a logical consequence of lower business costs as a result of repeal of business taxes coupled with competition for consumer dollar between business competitors and the tax free incentive for the individual to invest and save vs spend for consumption.
The Jorgenson estimate of an initial 20% decrease and continuing to fall across time is a consequence repeal of the income tax side of things only, and is only the more strongly asserted when one recognises addition savings to business from the additional repeal of payroll taxes.
If you want to doubt the potential for a decline of product prices in competitive markets thats your perogative.
I however am satified with the Jorgenson estimate as a lower boundry of the decrease in prices that can be expected in a constant dollar terms with full implementation of the HR25 Fair Tax legislation as it is currently written.