Well...of course that would stay...as would some part of our income tax as well. Any money saved by disbanding the IRS would of course not be passed along to us in savings. Instead it will be spent by politicians to benefit the greater good. Of course the rate would need to increase over time. At least it would finally provide a way for our government to finally tax frequent flier miles.
What happens to the present sales taxes we pay on purchases imposed by cities and counties?
The FairTax legislation is a replacement for federal income and payroll taxes. As federal law, it cannot address state or local govenment.
As far as impact, the only factor changed is when federal tax dollars are taken from you, before you can spend today, or when you spend under the FairTax.
A retail sales tax gives you the first option of using your money, save and invest without tax, or spend and pay tax.
And income tax takes the dollar before you can save or invest.