If you think this blows you had better hope that Hucksterbee or any of the other "Fair" Taxer's doesn't ascend the thrown. For if they do you will suffer the inequity you describe above on steroids.
Imagine, you paid taxes on your income all the way through your accumulation phase just to have them switch to a tax on your consumption right in time for your retirement. I suspect this double fleecing of the baby boomers (which is where the money is) is what is driving the sudden epiphany in Washington that the current income tax system may be broken. But take heart, the crooks in DC are way too vested in selling favors in the tax code to make any significant change.
I have even worse news, but in the interest of brevity I will put it in a separate post.