I have a little problem with that, too. If the "fair tax" replaced the current income tax, my family would be better off. Until my husband and I retire. Then we would be paying 30% more for everything we buy with our retirement savings, which have already been taxed once.
I have a little problem with that, too.
You shouldn't - since it isn't true but merely more of the demagoguery put forth by some on these threads.
The fact is that under the FairTax you pay NO tax on any savings (previously taxed or not) nor on any investment income that they might generate. You are taxed only when you purchase certain things at retail for consumption (which you control) - and not everything is taxed when purchased.
Among the things not taxed under the FairTax are:
1) annual amount paid out for loan payments, including both principal and interest. (include existing mortgage, auto, and all other loan payments.)
2) annual tuition payments made for education for any age, any level. Include annual student loan payments
3) annual amount of all funds deposited to any savings account or retirement account through a government plan, through your employer, or privately, and all funds used to purchase any stocks, bonds, business, or investment vehicle of any kind.
4) annual amount of all funds you have donated to any Church, profit or non profit charity or organization, or given to any individual through a gift, inheritance, donation, or court order, including child support.
5) estimated annual amount of all taxes paid to any State, County, City, Municipal, Township, and other local governments. Include state income and sales taxes, property taxes, school district taxes, deed transfer taxes, occupational taxes. Include both State and Local taxes paid throughout the year, through payroll deductions and estimate those paid on your own, such as sales taxes.
6) annual estimate of funds spent on purchases of used items (jewelry, clothes, used real estate, used cars, used furniture, antiques, etc.).
7) donations as a political contribution to an individual or political party
What is taxed is not taxed at "30%" as the distorters like to present, either. The actual tax cost to the buyer is the cost of the thing purchased without tax plus your effective tax rate under the FairTax which is typically less than half your effective income tax rate.
IOW, your actual costs will be lower than they were previously since your purchasing power is increased and keep in mind that under the income tax any purchases you make will have some cost component of the income tax embedded into the cost of the thing purchased (which is eliminated under the FairTax).
The claim to try to get people to believe that "everything they buy" will be "30% more" is a demagogue's delight. Don't fall for it.