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Of course that is true, but the economics for Bob's bakery and Jack's Bakery are the same, and if the price of bread with a 30% tax on it is higher than people are willing to pay, then one or both bakeries go out of business.

Only if people no longer need bread. They are going to have more money to spend.

If the FairTax is revenue neutral the same amount of money will flow into D.C. as before. I think it's safe to say prices will rise. OTOH, I think there will be more overall consumer spending power due to the efficieny in compliance.

They are going to have more money to spend.

Not true for retirees, persons on a fixed (eg pension) income, or anyone with accumulated wealth. Those people will have exactly the same amount they have now, it is their children and grandchildren who will suddenly have 25% more take-home money. Does this sound Fair?

Won't throwing a bunch of new money without any increase in productivity just create inflation? Isn't it almost the definition of inflation?