Why is it called the 'Fair Tax'? Well because it does not want to be known as an income tax cut for those who don't have to spend every dollar they make to live.
Leaving something out aren't we? It would un-tax the poor, even insulating them from SS and medicare taxes since everyone would receive a prebate of all sales taxes needed to purchase life's basic necessities. At the same time, those who make and spend a lot of money will pay a lot more in taxes. Those who make and save a lot of money won't pay as much. Those who make very little money will pay next to nothing.