If I pull money out of savings it won’t be for a vacumn cleaner:’) Whatever I buy though I expect to pay the 8 plus % in taxes. That is in addition to everything I pay in to IRS.
Of course, a person would pay a sales tax on goods and services purchased with money he/she took from savings/retirement accounts. As I understand it, the “source” of the money used to make purchases is quite irrelevant.
To me, then, the relevant question would be what else would change (in terms of tax liabilities) for that person under the Fair Tax “system”, and would those other changes offset having to pay the sales tax on such purchases. IOW, would that person be better off, worse off or the same under the different systems?
I’ve heard arguments both ways (pro-FT and anti-FT) and it seems to come down to “whom do you believe?”. Right now, I’m not at all sure who I believe.