Only on a forum like this would people actually see through the "Fair Tax" plan.
The problem with this plan is that the extremely rich can become richer so much faster. By taxing spending you encourage hording (or spending out of the country). Now, while saving your pennies isn't a bad thing, if everyone in the nation were to start saving a large portion of their money at the same time, there could be a severe economic downturn.
The only fair tax system that I could imagine would be so complex, and so overbearing that it would never be implemented. That system would be one completely based on an increase of "wealth", no income tax, no sales tax, just take what you have at the start of the year, and compare it to what you have at the end of the year. In order to make it possible, you would need a database that kept track of every single purchase that was made by every single person. Unless you have complete faith in the government, you can see why that huge database of every single purchase could be used as a tool for evil. The wealth gain is the idea behind our current tax system, but since there is no central database of all of your purchases, there is an income tax to assume most of it, and a billion little rules to try and sort the rest of it out.
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