On the funding and revenue of the REM

I know the REM is a divisive topic on the blog, but I’m curious what people make of this analysis of how costs and expected revenue from the system balance out. I have to admit, my brain starts fizzing part way through this (I pay someone else to sort out my taxes too), but I don’t know whether that’s my finance circuit melting down or a strong sense that flimflam has taken place.