[Always Right]

Not the case.401K income is not taxable the day you retire.It is taxable as you withdraw it over 20 years at the rate of withdrawal perscribed by the Gov.The retired person comes out ahead.No income tax on retirement no consumption tax on basic neccesities(where most of spending goes)

Retirees will take it in the rear under the fair tax. All the money they saved over their whole career will overnight see a reduction in purchasing power of roughly 20%. If you call that coming out ahead, I don't know what to tell you. People earning income will see their paychecks go up to compensate, fixed income people are S-C-R-E-W-E-D.

[kjam22]

Oh you forgot... they're gonna let you have food and water without paying taxes on it. :)

[Doctor Stochastic]

People earning income will see their paychecks go up to compensate, fixed income people are S-C-R-E-W-E-D.

One of the purposes of such a sales tax seems to be to recover the income people "sheltered" for retirement, and make the pay their fair tax burden now.

[Blessed]

>Retirees will take it in the rear under the fair tax. All the money they saved over their whole career will overnight see a reduction in purchasing power of roughly 20%.<

But they will have 20% more money available because they will pay no income tax on the distributions from their 401K plans.It becomes a wash for them except they gain flexibility and have more total assets.