OK, I have not made myself clear.
I paid income taxes on money I have in the bank when I earned it. Now the federal government says that instead of an income tax (which my savings was subject to), they will be taxing my money on how I spend it. That's fine, except I already paid my taxes on money I had earned and saved!
So any money I earn now under the new system is placed on the same plane as the money I have saved (and already paid my taxes on). Money I earn now under a new system enjoys a benefit that the money I have saved doesn't.
Specifically, say after taxes I got 65 cents post-tax money for every dollar I earned, and I saved some of it. Any new money I earn goes into my savings at $1 for every $1 I earn under a Fair Tax system, and gets taxed at the consumption level.
The problem is that to match every new $1 (fair taxed) I earn, I need to have $ 1.53 (post-taxed).
What's so fair about that? And indeed, how does that leave me better off?
I thought you were talking about spending the income taxed, saved money under the present system vs. spending it under the FairTax. Somehow I miss your $1.53 example. Can you give me a more concrete example?
Are you concerned that the "old" (income taxed) money is somehow not increased by some operation of the FairTax to restore its value? I don't think I understand what you intend by the $1 new vs. $1.53 old comparison (if that's indeed what you're trying to illustrate).