[TheOldLady]

"2. pre-earned/saved money is re-taxed when plan is implemented"

"Savings will no longer be taxed under The Fair Tax as it is with the income tax since any tax on income will be eliminated. That will more than offset what has been taxed."

I think he means that when you have savings now, that money, and the interest on that money has been heavily taxed. So if the fair tax is implemented, and you spend any of your savings, it will be taxed again with the "fair tax." That's a really serious problem. You would lose a huge chunk of money that has already been taxed to the hilt.

[Principled]

This is the problem the nrst faces IMO. It is mitigated by some things but this is the major obstacle. They gotta figure a way to avoid this. jmho

[Man50D]

So if the fair tax is implemented, and you spend any of your savings, it will be taxed again with the "fair tax."

It's already taxed ever time you make a purchase! Corporations have taxes levied on their income. That becomes a cost they pass onto the consumer by including it in the price. The Fair Tax will remove the embedded taxes by eliminating the corporate income tax and will lower the overall tax burden compared to the income tax code. Additionally purchasing power will increase since federal income taxes will no longer be deducted.