[gitmo]

ADVANTAGES:

This plan does not penalize saving.
It does not penalize productivity.
It removes the burden of filing and keeping information.
It removes the need for deductions and loopholes.

DISADVANTAGES:
If the 16th amendment is still in play, it will just be a pile-on tax.
It will encourage an underground economy or purchasing out of the country.
Transactions like eBay, yard sales, flea markets will start to be Federally regulated.

[USNBandit]

The version of the Fair Tax I read included the tax on home purchases, but only if they were for a residence. The tax did not apply to investment property. The short term effect would be a collapse of housing equity for sellers with a huge price increase for buyers.

[topfile]

DISADVANTAGES: If the 16th amendment is still in play, it will just be a pile-on tax. It will encourage an underground economy or purchasing out of the country. Transactions like eBay, yard sales, flea markets will start to be Federally regulated
The 16th amendment simply allows an income tax, it does not require it. Used items will not be taxed(no double taxing).