"...There should be no resistence to exempting after-tax money previously saved unless this really is a scheme for the government to make money in the short-term to help reduce the deficit...."
Think about the logistics of doing this. How would you exempt this money without tracking all expenditures and withdrawls from these accounts? Do you want to re-impose an Orwellian tracking and reporting system? The Big-Brother enforcers? Think about what you are really saying here.......I could and would sign on to this as a saver and investor...but not at the expense of reimposition of the Gestapo.
If you can propose a method by which these accounts are exempted from tax when the contents are spent, WITHOUT the Gestapo looking over every transaction, I'll agree to it and advocate it. But I really don't see a way to do it without tracking and reporting that would be as bad or worse than what we currently have.
One of the beauties of the FairTax is that all of that Orwellian mess is eliminated. I'll pay for that...for myself and my children.