[Fruitbat]

Sounds like a massive oversimplification.

[Man50D]

Sounds like a massive oversimplification.

It sounds like you're making an assumption. The facts are at http://www.fairtax.org

[Willie Green]

Sounds like a massive oversimplification.

Yes, it is an oversimplification that denies market economics and assumes that the seller can fix a price that "passes along" all costs, profits and taxes to the consumer.
It ignores that, in a competitive market, sellers are not guaranteed a profit and cannot "pass along" a tax obligation that they may not even have.