Yes, that would be an area politicians could juggle for votes.
Another flaw, if you have a Roth 401k you've already paid tax on it. Now you pay tax on it again?
Another potential flaw. A 22% or so tax on the purchase of a home, new car? Adding that amount to the price of big ticket items would be a deal killer IMO.
I think the price of new homes and cars would be lower since the businesses building new homes and cars are no longer taxed and they no longer have to pass the cost of taxes, tax lawyers, tax accountants, record keeping, lobbying, etc. to consumers. I'm not sure how that plays out.
I should add that another problem I have with the FAIR Tax is the tax rate. It is too high. However, that is a function of government spending. Cut government, cut spending and grow the economy then the tax rate will decrease.
The one thing I have read little about the FAIR Tax is the potential impact of businesses moving to the US. Without business taxes, America would have the lowest (zero) tax rate in the world. Does this cause the influx of businesses that manufacture things and create jobs?