By the way, ThomasLite, I’ve read your thingy once, and haven’t fully digested it. I did find this on Wiki:

Both types of consumption tax create an incentive by end consumers to avoid or evade the tax, but the sales tax offers the buyer a mechanism to avoid or evade the tax—persuade the seller that he (the buyer) is not really an end consumer, and therefore the seller is not legally required to collect it. The burden of determining whether the buyer’s motivation is to consume or re-sell is on the seller, but the seller has no direct economic incentive to collect it. The VAT approach gives sellers a direct financial stake in collecting the tax, and eliminates the problematic decision by the seller about whether the buyer is or is not an end consumer.

So that would appear to be the major difference between the VAT and the Fair Tax; the chain of tax actually means that every seller has an incentive to collect it (making it seem what you said is quite true, that it has a minimal effect on each agent int he supply chain) whereas in a sales tax there is an incentive for everyone involved to avoid the tax where possible.