The FICA portion is pretty much a wash, yes. The remainder of the savings come from broadening the base of the tax and removing the system inefficiencies. Remember that all taxes are eventually paid by individuals -- the same number of dollars (minus overhead costs, which are much less under the NRST) are going to be collected from individuals either way. We are talking about changing the mechanism, not the amount.
But now you have a perception of higher costs that will reduce spending.
I disagree. People will have more money in their pockets and prices should, on average, show little post-tax change. That sounds like an encouragement to spend rather than a disincentive. I'd be more worried about inflation that I would be about a drop in consumer activity.
So what was an increase in a product's cost due to FICA tax is now an increase in costs due to sales tax. Again, it's a wash.
As it should be. It is a replacement tax, not a wholesale repeal of federal government.
But now you have a perception of higher costs that will reduce spending.
Lets see, more dollars in the pocket from receiving gross pay instead of afterwithholding pay.
Putting out the same dollars for consumption+tax that is done today.
And that will reduce spending alright.
Increased savings and investment by individuals and more the electorate jumping up and down on Congress Critters for lower taxes and less government spending is the most likely scenario.