And my present savings will be taxed, AGAIN.
So moving to a new tax system involves trade-offs.
And the AARP will be right behind you, cheering this on. LOL!
Today, the only savings which the principal is untaxed are 401k and IRA contributions. Today, the only interest/dividends/capital gains income which is tax-deferred is 401k/IRA contributions.
All other savings are subject to taxation of both the principal, and the interest/dividends/capital gains is taxed.
With a national retail sales tax in place of the income tax, all savings become income tax-free, and all interest/dividends/capital gains become income tax-deferred.
I know people who got hammered on taxes on non-retirement investments in mutual funds during the bull markets of the 1990s. Thirtysomethings had to start investing in municipal bonds like their grandmothers because they couldn't afford the taxes.
For me, a saver by nature, that on change would be huge. And I would be more than willing to pay tax again on my other investments to free up all future investments.