[wgflyer]

"And BYW, your 401k contains your pre-tax savings, not after-tax ones."

Yes, that is correct. However, under the current system I have to pay tax on it when I withdraw it. Under the FairTax I could withdraw it, invest it in something more productive and not pay tax on it or it's returns until I spend it, which is quite ok by me. Under a flat tax I would be taxed just as in the current system. Both the flat tax and the current system maintain all the flaws, and threats and intimidation, of the current system.

Paying tax when one consumes seems fair. Paying tax simply because it's there doesn't. In the former, I balance my consumption against the tax. In the latter, I am hounded and harassed on a continuing basis by a government that knows no respect for it's citizens. Do you really prefer the latter?

[GSlob]

You keep confirming my low opinion:
In your 401k even under the present system you already have enough flexibility to invest in what in your opinion would be more profitable variant - either in that same 401k or in a rollover IRA. Thus the reinvestment and flexibility option till the final withdrawal you already have, and it does not count - it will be taxable for you, this way or that - either as an income at withdrawal, or as a sales tax at spending. The times of withdrawal and spending could be very close, so there need not be missed investment income - just imagine that you withdraw your 401/IRA funds at ATM in the supermarket in "as needed" amounts, like $40 at a time.
In reality it is a bit more complicated, but with judicious monthly withdrawals to fund the current spending one misses on average half a month worth of the investment return - and gains more than half a month worth of time if one pays estimated tax on the withdrawals at the last possible moment. Thus the spending money does have enough time to sit in the interest bearing senior checking account.