Let's assume the current income tax scheme. I take the $800,000 in savings and buy tax free municipal bond fund (APX currently paying 5.7%), I get $45,600 tax free, plus the $21,600 S/S I'd have to pay tax on at 28% rate or $6048, for an effective tax rate of 9%, considerably better than the effective FairTax of 14.6% you calculate.
But I want to buy a boat, now that I'm retired, and have a nice nest egg, and time to enjoy myself. I take $200,000 of savings and buy a nice new cruiser - and will not have to pay the $60,000 or so FairTax on this purchase.
Your list of untaxed expenditures is very strange. It would be quite revolting were the government to start taxing loan repayments, or money put into savings.
Also keep in mind that under the income tax you will be paying an additional tax amount in the form of higher prices - an amount that FairTax opponents have stipulated as 9% - on everything that you buy (even the S/S funds) - whicvh would make your income tax effective rate 24.88%.
The supposed higher price built into things due to income taxes is a debatable point. If industry still pays its workers their current pre-tax pay, rather than their current take home pay, there may not be any significant reduction in pre-FairTax price of products. To be fair, industry ought to raise workers pay by the payroll taxes the businesses would be relieved of having to pay, since the workers will now be paying that tax. Doubt that will happen though.
"Your list of untaxed expenditures is very strange"
It is also very accurate.
"The supposed higher price built into things due to income taxes is a debatable point."
Great - love to see you do some debating. What's your take? Are you claiming that there are no tax cost components embedded in prices and that prices will remain as they are??? Or what ... and why.