Original sentence: FairTax supporters claim that the current system is no different; due to "hidden taxes" embedded in the current prices of goods and services, savings are being taxed a second time already when spent.In this case, individuals under the current system who accumulated savings from ordinary income (by choosing not to spend their money when the income was earned) paid taxes on that income before it was placed in savings.Retirees have spoken out against the FairTax proposal, claiming that it would result in double taxation.The FairTax proposal does not address the transition effect on taxpayers who have accumulated significant savings from after-tax dollars, especially retirees who have finished their careers and switched to spending down their life savings.Under the FairTax proposal, this money would be fully taxed again as it is spent
Edited sentence: Although partially true, the FairTax proposal would apply a full tax burden to existing savings.FairTax supporters claim that the current system is no different; due to taxes embedded in the current prices of goods and services, savings are being taxed a second time already when spent.However, money in after tax savings has already had the payroll tax burden paid, and that the remaining embedded tax portion should be the only tax burden applied to this money as it is spent.In this case, individuals under the current system who accumulated savings from ordinary income (by deferring present consumption when the income was earned) paid taxes on that income before it was placed in savings.The FairTax proposal does not address the effect of double taxation on anyone who has accumulated any significant savings from after-tax dollars, especially retirees who have finished their careers and switched to spending down their life savings.The FairTax proposal does not address this inequity.Under the FairTax proposal, this money would be fully taxed again as it is spent, resulting in double taxation