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Unless a retired person is withdrawing principal from savings and investments he is still being taxed on the interest and gains, taxes he wouldn't pay under the NRST. If there are reductions in prices due to the elimination of the embedded taxes, and I think there will be, the retired should be no worse than even and probably they would be better off. They are the most likely to employ tax experts to file for them. That costs money too.

The successful retired have savings to use for the remainder of their life, that will be consumed, more or less, throughout their retirement. Much of their savings has been burdened with Social security, medicare, federal and state income tax, and inflation brought about by federal government monetary policy. The currently taxable furture earnings on these savings will be a small part of the 40 years of accumulated savings. Most people I know (middle class, engineer) in their 50's have 1/2 to 1 million in accumulated retirement savings. So we are talking about a $125000 to $250000 tax assessment against these prudent peoples' savings. That's where the tax benefit would be coming from. A (one time) ripoff of the boomers.

It would be a simple matter for the "Fair Tax" bill to include a provision to compensate those who had after tax savings, with a 25% (or whatever the sales tax rate would be) payment of net after-tax savings as compensation for future taxes. Compensation is proposed to make the "poor" wage earners whole with respect to the new taxation method. Do you hear of compensation for savers in the plan? No!

The purpose of this "Fair Tax" is to get at the massive savings that the boomers have accumulated, because the federal government's voracious appetite for money will likely cause the working stiffs to revolt (like OMB projections of 75-85% tax burdens on wage earners). The septuagenarians will not have the strength to overthrow the avaricious political class thieves.

How about an annual tax on "net worth"? Why not? Because it would affect the rich and powerful. But there is a weak group with bucks to hit - that is the boomer retirees. Sock it to 'em, with a "Fair Tax".