I just cut and pasted from an article written by a fair tax supporter. If they misrepresented Jorgenson, maybe they did. But what you posted did not refute it. The model you reference has nothing to do with the embedded taxes or even compliance costs. How Jorgenson came up with those numbers is what I am interested in. His modelling of what happens after if a sales tax is enacted is a completely different issue.
The model you reference has nothing to do with the embedded taxes or even compliance costs.
ROTFLMAO, the baseline the ouput is the result of math representation of the current system as it tracks historical tax and economic data series.
How Jorgenson came up with those numbers is what I am interested in.
He establishes parametric functions representing the economic data series from which they are derived, NIPA, CES, IRS tax data, and other statistical data sources evaluated over time isolating the parametric factors that represent business, consumer, labor and govenment economic factors relating to the solution the problem.
His modelling of what happens after if a sales tax is enacted is a completely different issue.
His studies include both the historical system (baseline) and the new tax policy implementation, providing comparative differences between the two for outputs. As such they are the issue.