The workers take home their full salary, which is of course, more than their full salary minus taxes.
The retail price of every product and service loses 23% in embedded cost and gains it back in the form of a sales tax. 23%-23% = 0. It's revenue neutral.
You fail to comprehend what Dr. Jorgenson's explaination means. It means you can't take your full salary and have prices fall significantly.
Follow the tax dollar. In today's system, the dollar goes from the customer to the business. The business uses that same dollar to pay workers, buy equipment, make profit, and pay tax, etc. The part of that dollar that pays the worker is further split into money the worker takes home and money paid on the workers behalf to others (payroll and wage taxes, benefits, etc.)
Follow me so far? ... good
Now take the part of the dollar that the business used to pay the employee and eliminate the taxes the business pays on the worker's behalf. What happens to that part of the dollar under your scenario? Though it moves from the taxman to the employee the business still has to pay it out. Because the business now gives that part of the dollar to the employee to take home, the business cannot use that part of the dollar for any other purpose (like expanding production, or profit, or reducing cost.) The only part of the dollar coming from the customer that becomes surplus to the business is the profit tax it used to pay. That amounts to roughly 33% (tax rate) of 10% (profit margin) of the dollar that the business got from the customer. That's three cents.
Now the business might what to pass that on in the form of a 3% price reduction, might want to reinvest it to grow his production capacity, might want to keep it for profit ... what the business does depends many, many factors that are particular that business' circumstances.
Of course since it no longer needs one, the business might fire its tax accountant and pass those saving along.
But, under no circumstances does the business get the abilty to give the same part of that same dollar to BOTH the employee AND the customer.