That would also help encourage more to save than at present - when the savings rate is, basically, zero. It also will help most taxpayers by boosting their purchasing power.
It's time for the FairTax!!!
I'm agnostic on the Fair Tax idea. I agree that it could be a good deal for say a 22 year old, fresh out of college, but what about people who've been working and saving for a while?
Let's say I'm 65 years old and have $1,000,000 in Muni bonds paying 4%. I'm happy to collect my $40,000 every year and now the fair tax comes along and suddenly my tax free income gets hit with a 24%, 19%, or whatever sales tax rate. What do Fair Tax proponents have for people who no longer have income tax obligations?