nobody is lieing to me. i am just reading the law. i intend to spend every nickel of my social security payments and i will therefore be taxed at approx 23% on all of it vice the current 10% on a max of half of it. i would have liked this law when i was a wageearner but i hate it now that i am retired and ready to draw my social security.
If you spend it all you'll have to be sure you spend it all on taxable things and that you spend so much that you're way above where the prebate decreases the effective rate. That would be a good bit of spending over and above just your S/S.
You should check the FairTax website and figure out your efective rate might be with the prebate etc. It's frequently quite a bit less than the maximum 23%.
http://www.fairtax.org/tax_returns_ss.html
In addition, though, when you spend that S/S amount under the present system you'll actually be paying a lot more than the 10% you state in the form of prices that are raised by 20-25% by the effects of hidden taxes which are embedded tax costs that raise all prices - that's also a tax that is eliminated with the FairTax.
Your concern is understandable. However, there is a mitigating provision that will offset this factor. It's called the "pre-bate". If you go to the Fair Tax website and read up a bit on that provision I believe you'll understand that it will more than compensate for and offset the effects of those changes which understandably worry you.