[Always Right]

My earnings go up by 20%, my cost of living goes up by 20%. Okay. I have spelled that out so many times ad nauseum and you know it. What is the deal? Surprise me with a nugget of wisdom.

Because people who are retired and living off savings will all of a sudden have 20% less purchasing power. They will be paying tax on their already taxed savings. This is why the fairtax will never get the old folk vote and will never pass.

[groanup]

And I have acknowleged that is a problem. I have also pointed out that even after tax savings, with the possible exception of municipal bonds, will benefit greatly if there is no income tax. These people will not have automatically a 20% loss of purchasing power. They may have a loss but far from a number that exactly matches the sales tax rate.

ARe you one of those who will lose some purchasing power in your retirement savings or one who will reap a financial windfall. If you have a lot of retirement savings it is likely you fall into one of those two categories. For that reason, it shouldn't be too great a leap for a one time adjustment between those two extremes. I'm sure it can be addressed in congress.

[lucysmom]

They will be paying tax on their already taxed savings.

I guess the fact that the FiarTaxers rail against double taxation while creating a scheme that double taxes savings for a class of Americans is irrelevant. Just a minor transitional cost that others will bare. No big deal.