What most of you are forgetting is that the FairTax is designed to replace not only income taxes but also payroll taxes, which are highly regressive. The result is that all income brackets see a net decrease in their tax burden:
This raises doubt on the claim that the proposal would be revenue-neutral, but it dispels the criticism that it would be regressive.
The graph conveniently stops at 60 years old because the creators don't want America to know what the Fair Tax actually does--it makes socially-secure seniors pay for Social Security and all of the retirement tax subsidies they enjoyed during they're younger years. This is the best feature of the Fair Tax, and the true origin of the 'fair' moniker.
The problem with the Fair Tax is that is suppresses output because it taxes excess supplies, unlike the income tax, which actually subsidizes excess, unsold inventory. Proponents argue that tax avoidance will streamline manufacturing and make America more competitive. Falling prices will eventually offset the tax. Detractors say that Fair taxation will lead to an exponential increase in prices as taxes rise and inventory declines. Furthermore, they say that 0% income tax will not be enough to attract capital and manufacturing to the US. Instead, manufacturing will continue to move overseas to avoid the ad valorem tax on imputed wages.
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