[Your Nightmare]

Nonsense - of course it does. If you save it rather than spend it there is certainly no "loss of value".

Savings have no value unless they are spent. And the return of savings on the prebate would still be taxed when spent.

[pigdog]

But the savings themselves lose no value and even the income earned could also be plowed back into more savings. Your point is not made.

The intent of the Calculator is to offer the comparative information so some bloke spending a given amount under either system can get a handle on his FairTax effective rate. Presumably he knows his effective income tax rate (though I doubt it since hidden taxes aren't considered under the income tax).

[groanup]

Savings have no value unless they are spent. And the return of savings on the prebate would still be taxed when spent.

That statement can be a putt that breaks 15 times before it drops in the cup. Savings can also be a base from which to accumulate wealth. Savings can also be an emergency fund and create peace of mind. Savings can be passed on the future generations. Savings can be collateral for leveraging in your business or personal accounts. The amount of savings you have can literally determine HOW MUCH you spend on any given thing.

Technically, you are correct. But in the real world savings are used for many things.