[robertpaulsen]

"In this scenario, everyone tries to get a card."

Exactly. Think of it as a 30%-off coupon.

Want to buy a car? First, set up a small business. Then buy the car for business purposes, present your tax exempt certificate, and save 30%. All legit.

Then use the car for personal use -- illegal, yes. But some will think that it's worth taking the chance on a $50K car to save $15K.

People commit murder for less.

[BJClinton]

I hope one of the NRSTers responds to rp's point. I see this as being way to easy to cheat and as RFG pointed out, every bit as burdensome on business as the current income tax system. A flat tax with only 'cost-of-living exemptions' (medical, school, retirement, poverty level income) seems much more efficient.

[mvpel]

And if you drive around the parking lots of the malls in south Nashua, and observe all the Massachusetts license plates, people will drive a good way to avoid even a 5% tax.