Yeah, and those numbers aren't realistic (geez, use your common sense - a 13% increase in GDP with 22%deflation).
Price decline arising from increased productivity and cost savings is not deflation my friend. It is a properly operating economy.
Jorgenson's model is flawed.
No your ability misrepresentation of concepts of replacing a tax on income with a tax on retail sales is flawed. Moving the point of tax collection does nothing but make a tax visible and remove inefficiency from a production process. Of course product price falls, the sum of price and tax remain essentially constant with natural decreases arising from increased productivity and production efficiency.
Your mistatement of the economics of the situation is what is flawed.