This retired would welcome the FairTax. When all things settled out, there probably wouldn't be much difference in the amount of my tax. But I would be relieved of the obligation of keeping detailed records for years and years and compiling, summarizing and filing a tax return every April 15 that includes intimate details of my financial situation and the charities I help support.
Retirees that have all their assets in cash accounts are in the same situation as an estate. After the assets of the estate have been taxed and accumulated, they are taxed again when the estate is settled. For those with all cash retirement assets, the main benefit of the FairTax would be a general downward drift of prices and no income tax paid on accrued interest (or anything else). Retirees that have their assets in IRA's, 401(k)'s, appreciated stock, etc should have no problem with the FairTax. These assets are mostly untaxed.
I just mentioned several gimmicks that Congress has given us to tweak the income tax. FairTax would make new IRA's, 410(k)'s, long and short term capital gains obsolete, as well as depreciation calculations, tax exempt bonds and dozens of other complicated little gimmicks. To me, much of the advantage of the FairTax is the relative simplicity.
Double taxation is not unheard of with the present system. Estates, as I mentioned, are taxed twice. Taxing dividends is a second taxing of a corporation's profits.
I filed my ‘08 taxes and quickly realized that the only taxes I have to pay from now on are real estate and state sales tax. And I could care less as regards taxing my estate when I pass. So it completely eludes me have a national sales tax will help me. It won’t. It will greatly increase my tax burden besides double taxing money I spend from my savings (not 401k). All round bad deal.