Dear Ditto,
Some high wage earners spend it all, some don't.
The real issue is folks with very large incomes, most of which are produced via investment portfolios.
These folks are currently taxed, albeit at low rates, on their dividend income and capital gains, and at ordinary rates for interest income.
But, lots of these folks don't spend anywhere near what they actually receive in currently-taxable income. They pay their taxes and re-invest a lot of the dough.
These folks will see their overall tax burden fall dramatically.
sitetest
There are also some other good outcomes including:
1) Illegals being taxed
2) Underground income being taxed
3) Employers will bring businesses back from overseas due to less intrusive taxing
I am sure Ditto will or has answered this better than I can but, as he said, any invested money is quickly spent. You know when you put money in a bank, in an insurance policy, or in any investment, that the institution you gave your money to can't just sit on it and still pay you for the privilege. They must put it to work. They lend it or invest it themselves in some money making opportunity. Those who take the money must themselves do something with it and all along the way it is getting spent. A large portion of that enters the tax base of the Fair Tax.