From what I've read regarding the national level, the FairTax Bill may do away with a plethora of taxes, but the "basis" for the government ability to impose those taxes in the first place, the 16th Amendment, is left untouched.

Politicians just love to use the tax code for social engineering (buy a hybrid, get a tax cut) and going after their enemies. Richard Nixon did it back in the 70's (Huston Plan, anyone?) and Barack Obama is carrying on the tradition today.