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Their other asset is the equity in their house, on which they didn't pay taxes either.

My house was purchased with after tax income. Ditto for most people. All the equity portion of the mortgage loan was covered by after tax income. Only the "market" equity from "appreciation" isn't taxed and that is only true if you live for 2 of 5 years in the house before making a sale. That "appreciation" is mostly dollar devaluation. Southern California's overheated real estate market is one of the few places where market equity signficantly exceeds the equity paid back by after-tax dollars. My only pre-tax assets are 401K. Most of my after tax savings are sitting in stocks. The only "deal" in NRST for me is avoiding income tax on the 401K.

There's still the current "hidden tax" of 20-25% extra you pay for the costs of goods and services due to the effects of the income tax. With those removed (or at least a significant portion of them removed), not being taxed on any appreciation of your assets (nor at all on your 401k), and the FCA "rebate", your effective tax rate will likely be lower under the NRST than under the income tax, unless you are spending a lot of money.

You're right, except:

The only "deal" in NRST for me is avoiding income tax on the 401K.

But even that is a mirage. The Feds are going to insist on at least tax-neutrality so the money they would have got from you with IT on the 401(k) they will now have to get from you with a higher sales tax rate

I understand that you aren't jumping up and down with excitement over this plan, but I ask you to ask yourself if you want your children and grandchildren to be put in the same box that you have spent your working years in? Do you want their income to be confiscated from them? Or do you want them to have some freedom of choice in the matter?

Do you want them to be able to keep their entire paycheck and save for their future without the taxman taking from them the fruits of their labor as it did yours?

Did you consider that anything (depending on how successful you've been) that you pass on to them now before or after you die is subject to tax? Under the FairTax, it won't be.

What I'm asking is for you to look closely at the whole picture and the ramifications for the future of our country and your own family.

People fear an IRS audit more than they do just about anything else. Is that how a free people are to live? Is that the proper role of government -- to instill fear in the people?

Killing the IRS will really make us the greatest generation.

"Most of my after tax savings are sitting in stocks. The only 'deal' in NRST for me is avoiding income tax on the 401K."

I think that you missed the most important benefit of all for people like yourself. A couple of nationally known money market managers have told Congressman Linder, the bill's primary sponsor, that they forecast that the DJI will double within the first 24 months of the FairTax's enactment. That will dwarf any changes in your net taxation on consumption during that time period.