The increased costs are real enough as you could see with a bit of research on the FairTax website.
You don't seem to grasp what the increase stems from. Check the FairTax derivations of the increase.
LOL, I grasp everything just fine. What you don't seem to grap is that the extra money in employees paycheck has to come from somewhere. Since the total amount of taxes is to remain constant, the only source is increase in costs of goods. No matter how many times this is explained to you, it never seems to penetrade your hard head.