[knuthom]

You answer did not deal with the issue of people who are living off of retirement saving, instead of income. The fair tax could not be “typically less than half your effective income tax rate” if my effective income tax rate is zero (having already paid income taxes on that money when it was earned).

[baybabe]

In that case it would most likely be zero under the FairTax or at the very least much less that you'd pay in the income tax costs embedded in prices at present. If you think the income tax "costs you nothing" presently when you spend your money you don't realize how the tax system presently works.

In addition, any investment income you obtain under the FairTax is not taxed unless you spend it for items that are taxed under the FairTax - and not everything is taxed. You'd certainly be no worse off financially and most likely quite a bit better off.