Part of the problem is the way Boortz and Linder are using the idea of embedded taxes. In an eight-year-old study paid for by AFFT, Harvard economist Dale Jorgenson noted that because the taxes paid by everyone in the chain of production are embedded in the cost of goods, prices could decline an average of 20 percent if all those taxes were scrapped. The FairTax Book devotes an entire chapter to this idea.

What The FairTax Book fails to mention is that prices can only fall this sharply if companies cut wages. I asked Jorgenson about this, and he agreed. Say your salary is $100,000 a year today, but you take home $80,000 after taxes.
the taxes spoken of in the first paragraph are not the only tsxes paid/collected. prices will decline 20% because the company no longer has to pay its 7.5% of the 15% demanded by Social security, although the company has no obligation to give that to the worker they should return the 7.5 contributed by the worker. so a combination of the Social Security, Medicare (employee does not pay thet) Unemployment insurance and various other taxes royalties and fees collected by the government go directly into the company profit book. Prices will fall as companies are competative. The price with the uniform sales tax will stay the same with variations and bubbles. Spending is what americans do, they will spend enough to make the tax revenue neutral. What does happen is that lobbyists go away, no breaks, no deals. Without lobbyists and fat cats we may get some decent political critters.
thanx,
bill