[BikerNYC]

The short and direct answer is NO.

Make it YES and you will have my support. Otherwise, I see this plan as a way to gouge people during the transition from one tax system to the other in order to offset a growing budget deficit.

This plan hurts the most those people who have saved a lot of money with after-tax dollars. You can talk a lot about "purchasing power" and all of that. All I see is that I paid income taxes on my money before I got to save it, and now I will be paying NRST (a tax meant to replace income taxes) when I spend that money.

I get hit twice. Remove the second hit and you will have more supporters.

[OHelix]

Keep in mind the problem causing this is that your savings are being taxed. The FairTax ends that. Once it's emplemented, you no longer will be taxed on savings.

CG's points are also valid. There should be very little difference in the value of that cash under the FairTax verses under the current system. Especially in the long run. It is even possible it would end up being more valuable under the FairTax than the existing system.

If you have heirs, there are further advantages to the FairTax as it eliminates inheritance and death taxes.

[eastsider]

This plan hurts the most those people who have saved a lot of money with after-tax dollars.

I'm new to this idea, but I don't think it would hurt tax-deferred accounts such as a 401(k)s or Conventional IRAs -- in fact, as I understand it, it would be a boon to holders of such accounts -- but it would hurt non-tax-deferred savings.

[Conservative Goddess]

"...Remove the second hit and you will have more supporters....."

You're getting hit twice regardless......invisibly under the current system.......or visibly under the FairTax.

For those who've truly amassed a fortune, and want to pass it on to heirs...the FairTax removes the Estate and Gift Tax impact as well. NO MORE complicated estate planning. There's another benefit of the FairTax that often is not considered when after-tax savers are evaluating the FairTax. No More Minimum Distribution Rules from IRA's, 401(k)'s, etc....and no limit on inter vivos gifts.

[CSM]

Just think, if you supported the disbanding of SS then the rate could be significantly lower. Therefore the double taxation wouldn't be as painful. Would you be willing to sacrifice your lifetime contributions to SS to allow for it to be comletely torn apart?

Also, your double taxation issue is really no issue. Yes, you will pay a direct sales tax which substitutes for the embedded tax in the price of goods you buy anyway. Would you prefer the tax to be visible or hidden?