I support a national sales tax, but I have to disagree with you here. Of course the feds are taxing money twice if it was saved before the sales tax went into place:
Person A pays $25 on his earned $100 and saves it. After the NST, he spends his $100 on a widget costing $100 and pays another $25 in taxes. The widget costs $25 less than it used to. Person A has paid $50 in taxes but has saved $25 because of the lower widget cost.
Person B saves $100 without paying taxes. He spends his $100 on the same widget Person A bought and pays $25 in taxes. He enjoys the same lower widget cost but has paid half as much in taxes.
Any sales tax scheme will need to account for these differences. There are a ton of people with substantial Roth IRA (and other post-tax) savings that will be screwed (in relation to people without savings) under this scenario.
I should clarify one thing re my above post: It is clear that Person A is no worse off than he would have been otherwise - but Person B gets to enjoy the benefit of the new tax system while Person A does not.
I support a national sales tax, but I have to disagree with you here.
You disagree because you don't understand the economics of the Fair Tax scheme.
Person A pays $25 on his earned $100 and saves it. After the NST, he spends his $100 on a widget costing $100 and pays another $25 in taxes.
After the effect of the Fair Tax kicks in, lowering manufacturing & selling costs, he spends $75 on a widget that formerly cost $100 and pays another $25 in taxes.
Given, -- lower costs do not happen overnight. Income Taxes must be abolished substantially before the sales taxes are put into effect.
Savings, whether pre or post tax, whether spent under the income tax or the nrst will have the same fed tax cost bite at the counter. Their is no difference. Please take a look at the quick link.
From the link, "...some erroneously believe that people who have invested in Roth IRAs will never pay taxes on this money again....