It's insanity to oppose a system that will shift power away from the federal government and back to the people by allowing them to decide when and how often they are taxed based on when they make purchases
This is a fundamental misunderstanding of the relationship of the FedGov to the "people". Your complaint isn't really about the FedGov capriciously making up tax laws, that is absurd. Your complaint is that organized special interests, in effect, decide the tax code. The reason why we have a mortgage interest deduction is not because the Tax and Spenders had a rare moment of benevolence towards the serfs, its because the home real-estate industry worked the system to get it. Over a few generations of competing interests we have this convoluted mess of a tax code that is universally hated.
If anything, your Fair Tax could never be a reality because of the WTO and world courts. Lets say you had your wet dream of punishing the retirees and wealthy with double taxation and lets say every lie about how domestic industry would benefit were to be true. The countries with industry that competes with those in the united States would immediately file objection after objection with the WTO regarding an unfair market. Their argument, among many valid complaints is that the zero tax on industry is the equivalent of government subsidies of an industry, and the courts have always ruled against the united States in matters where this comes up. So you need to up your complaint to the WTO and UN since that is likely going to be the major obstacle.
You dream about not having a government inspect your income - we all would love that dream; but it is foolish to think that government tax regulators would be a thing of the past. Ask anyone who has to live under the burden of a VAT. Think about the sandwich shop or the diamond broker. In the former, each and every sandwich will have to be accounted for, audited and taxed. Unannounced and frequent inspections of books would be the rule. In the latter, how do you prove a diamond is "new" as opposed to "used", or a consignment? And who in hell would buy a diamond in this country with a 25% premium attached when one can pick up jewelry on the cheap during a cruise?
You are trading in one imposing government inspector for another. Furthermore, how does this work out for the majority of states that depend on an income tax at the state and often local level? Not only will the oppression continue on the sole proprietor for every nut and bolt sold at his hardware store from the sales tax inspector, but do we keep the same income tax auditor to make sure that he didn't deduct too much from his income statement?
Does the "Fair Tax" mandate an abolition of all income taxes in all states? What about the non-income income tax in Texas called the "franchise tax"? Is there a 10th Amendment anymore, or do these states have to tack on their 10-20% to make up for the lost income tax?
So it isn't really just the FedGod. Its will still be the FedGov, it will be the customs inspector who will demand an accounting of absolutely everything you take in and out of the country. Your bags will be relentlessly torn apart and searched for any valuable purchased elsewhere, any and all cargo containers will have to be heavily audited to make sure you didn't import a gray market car, or ship to yourself a plasma TV purchased outside the country. Organized crime will flourish in ways that would humble the days of Prohibition and government will of course accuse you, the peasant, of being a participant in the underground market where you will have to prove that absolutely everything in your home, at any given surprise inspection, was legally purchased and appropriately taxed.
Then repeat this at the State and local level.
You are trading in the evil IRS for a total Police State that can march in at any time and inventory/audit your home, your business and your vaults.
Who again is the insane one?