FairTax doesn't go into depth about state revenue, merely mentioning that without the IRS most states wouldn't have much of an income tax system, and they could piggyback onto the FairTax.
I'd be just as vehemenently opposed to a federal property tax. I also agree on the nature of ownership of property v. paying a rental fee (property tax) to the government. It's a moral argument agains taxes on wages and capital. I feel that a similar argument exists for retail transactions, that FairTax wants to collect. You are basically begging permission from the government to be able to engage in a voluntary transaction that is mutually beneficial to both yourself and the other party. It's almost back to the slavery issue with income taxes. One could make the argument that manmade property is different from God-given property. There's also the practical aspect of the fact that we can build more housing units, and more factories, and more 'wealth', but we can't build more land, more sky, etc., and therefore need to conserve it through taxation, and the taxation thereof doesn't decrease it's production.
Since the "Fair Tax" is based on consumption, it would be useful to examine how Americans spend their money. This follows since some of these expenditures would be taxed under the "Fair Tax" and some would not. The Bureau of Labor Statistics has a good summary of this. However, it is not clear which of these would be taxed from the book.
1) Putting excess money into CD and other savings methods.
2) Mortgage payments on primary residence.
3) Rental payments on place of residence
4) Medical insurance
5) College expenses
6) Contributions to charities
If you know the answer, please respond. After clarifying this, it will be possible to determine the varying tax burden for the various income classes.
PS - We know, from the book, that investments (stock, real estate, etc) would not be taxed.