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You already are double taxed. In fact, your a minimum of triple taxed on the same money today. First your income, fica, etc... taxes. Then taxes on the earnings from savings, and the embedded taxes you pay when you spend the money. So again I ask, what is different and worse with the FairTax on this issue?

Yes, the current tax system is a disaster. I'm not arguing that.

I am arguing, however, that I will lose money on my savings if the Fair Tax is implemented because I will be charged the Fair Tax on any purchases made with that savings and because that tax rate will be higher than the current "embedded rate." That is what is different and that is what is worse.

I've already paid my income, FICA and other taxes on the savings. I've already paid capital gains taxes on most or all of its appreciation. So the only thing offsetting the Fair Tax are the "embedded taxes" which are far lower than the full fair tax rate. That difference represents double-taxation above and beyond the over-taxation you’ve already mentioned.

Again, I will lose money when the Fair Tax is implemented as will everyone with any savings at all.

Hell, if the tax is implemented on January 1 then anyone paid on December 31 will be double taxed on that last paycheck unless they spent all of it before the new year!

check it out http://www.fairtax.org/PDF/TheFairTaxAndEconomicGrowth.pdf

Been there, done that. The Fair Tax clearly has advantages over the current system but I, for one, will not support it until the obvious flaws are removed. There is no reason to jump from the frying pan into the fire, even if it's a slightly cooler portion of the fire. . .

Flaws include, but are not limited to, too high of a tax rate, unacceptable taxation on pre-existing savings, the lack of a mandated repeal of the 16th prior to implementation and the almost certain chance of adulteration by the political establishment once the Fair Tax is in place.

Fix these and we have a discussion. Leave them in and the Fair Tax is doomed.

I am nearing 60 and close to retirement. Because of that, I will be in a lower income tax bracket, and benefit from a Georgia law that exempts much of my retirement income from state income tax. However, I like the FairTax. If it is good for the country, I will support it. Think of it in another way. What more do you have to buy in your golden years. I may buy another car, perhaps two, but aside from food, utilities, I won’t be paying out bigtime on the FairTax. Also, my retirement, and accounts (IRA, 401K) will be tax free with no income tax.