"Your “FairTax” on that home will already be a whopping $78,000, for a total purchase price of $338,000. Then government printing presses go into high gear. While you're still saving up for your down-payment, double-digit inflation takes over and the price of your house zooms 20 percent in one year. The house now costs $312,000."
That's incredibly misleading. In reality, inflation would help you out. Once you buy the house, your payments will remain set. As inflation occurs, you will be making more money, and the value of your house will go up. But your payments will not.
But how soon are you going to be able to buy that house in the first place if the Wolfe/Zelman inflation scenario plays out?