The only income they make is social security. At least that's what my grandparents make. Had they not saved over the years, they'd be screwed right now under the CURRENT POLICY.
My Granparents pay property tax, auto insurance, medical insurance payments, pharmacy bills, Dr bills etc...
They are extremely frugal. That's how they have income now to live and survive. They grow a good portion of their own food. They do not spend unnecessarily as I do. If they had 2K a year in prebate, they'd pay for their insurance costs alone.
Thier biggest expense is paying for their medical supplements.
Since their state and locality would also have to pay FairTax, they too would need to raise their "prices" (state and local taxes). That would likely mean an increase in their property taxes as well.