It sounds as though you don't have any taxable sales under the FairTax if you're selling to other businesses who use their buildings for bsiness purposes. If that's the case you wouldn't be involved in collecting taxes from them as those sorts of sales are not taxable.
The downside to that is, of course, that you don't get paid the 1/4 of 1% of the tax revenue in return for a two line report each month.
"It sounds as though you don't have any taxable sales under the FairTax if you're selling to other businesses who use their buildings for bsiness purposes. If that's the case you wouldn't be involved in collecting taxes from them as those sorts of sales are not taxable."
The specific issue I am addressing in my example is the theory that prices would immediately drop for all businesses and industries. In my research for how it would affect my industry, I do not see an immediate price impact reduction in the construction industry. There are too many services involved and to many business to business transactions that occur to build a new building. On top of that, the margins are so narrow and the cashflow is so low and the risk is so high, I believe there will be a long pause if the prices actually ever do come down. The price reductions to offset the 23% tax on the final product to the "owner" (my assumption that the end user or owner of the product pays it) will likely take a long time to be realized by the end user. Meanwhile, tack on 23% to the cost of a $200 Million project and most owners are going to balk at the cost.
Maybe I have this all wrong. Will there be tax on new construction? If a builder sells a house to a home owner, then I assume we tack on 23%. When an owner contracts out the construction of a new commercial building, he/she is not "selling" the product but paying for a product none the less.
Ask Neil. I would really like to get an answer on this. I am sure there are several other industries that this might apply to.
Thanks.