Dear Originalist,
I don't put any particular stock in Dr. Jorgenson. I'm not a proponent of the NSRT. However, he's the guy who developed the model to support the idea of the NSRT, and thus, figuring out precisely what he said clarifies the discussion. That's all.
That being said, I CAN understand his reasons for developing the model in the way that he did, passing the saved taxes to consumers, in that this model seems intuitively to me to create more overall economic advantage, than returning the saved taxes to the employee.
However, I truly doubt whether the model can be implemented as he has designed it.
sitetest
That being said, I CAN understand his reasons for developing the model in the way that he did, passing the saved taxes to consumers, in that this model seems intuitively to me to create more overall economic advantage, than returning the saved taxes to the employee.What's funny is that the labor supply response in his model is tied to the tax rate on labor income. So with no tax on labor income under a NRST, the labor supply jumps 30% the first year even though labor would be making the same amount of take-home pay! Economists...go figure.
BUZZZ ... wrong, s-test. The real model to support the idea of the FairTax came from an LLM in Taxation, not Dr. Jorgenson who is an economist. The model Jorgenson uses was merely analyzing aspects - economic effects - of the FairTax.
Gee, are you REALLY trying to make us believe you don't support the FairTax? Perhaps you'd present your better tax plan so we can take a look at it? AAnd tell us how it is surpassingly better than the FairTax?