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"This is not true. The resulting increase in the money supply will decrease the value of savings at transition by the tax rate. That is, if you have $20,000 in savings, it will by 23% less after the creation of the so-called "Fair Tax"."

Theoretically, this balances itself out rapidly. This is one of the points I am not yet completely convinced. However, the logic does say competitive capitolism will drive the correction to about pre-tax pricing. What may devalue the dollar (inflation) could be the additional spending that Amercans can afford especially if international businesses start setting up shops and factories and there becomes a shortage of workers, which drives salaries, which drives demand, which drives costs.....

There are worse things the country's economy could do.

I can not see how this would reduce, rather than increase, the tax collecting bureaucracy.
How do people accommodate for the massive shift required in collecting and record keeping? There is no way to keep people, like savers, from being burdened by the lag time in the economy change, without more bureaucratic growth and stupidity, as far as I can see.
Also, in a representative gov't it is a certainty that some good will be exempted, and then some more, and then some more...
I think that smugglers will boom - sure, they may have to pay taxes on things they buy, but if they are willing to sell without taxing, they will, a whole barter smuggling economy is bound to spring up, making the current underground economy pale in comparison. How will the feds stop this form happening? Will they be keeping a record of every receipt you turn in for your exemptions?
What happens, if we push to have a system like this put in place, only to find it worse than the one we have now? Will the gov't not say, this is what you asked for - much like similar 'misunderstandings' of the tax situation in pre-Revolutionary America. Such an upheaval could lead to massive disobedience and rebellion, as it did before. How would we resolve it?
I don't like the current system, but I am not sure that tossing it for the potential evils of one we do not understand is the right idea.