Of course, that happens in spades today. But what is the story with spending? Take a looksee here. Even folks who report waaaaay below the poverty line in income end up spending up to and above it. Shoot, the poor have cell phones, cable tv, and buy beer and smokes in the USA.
I'd never attempt to promote the notion that the "fair tax" plan is perfection. However, it's a damn sight better than what we have now, and it's about the only plan that "is" better that has a realistic chance of being implemented.