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This is precisely why the NRST proposals call for no exceptions on retail sales taxes -- otherwise, you get into these types of cases where X is taxable, and Y isn't, and usually, it comes down to social engineering BS more so than any real logical reason.

And this is precisely why the NRST will never be supported by many people. It is immoral for the gov't to tax the milk out of children's bottles. Any system that taxes basic food and clothing is.

And this is precisely why the NRST will never be supported by many people. It is immoral for the gov't to tax the milk out of children's bottles. Any system that taxes basic food and clothing is.

That's built into the plan via the FCA (a/k/a the "prebate") -- it is essentially a tax credit for "necessities" without telling people specifically what their "necessities" are. In practical terms, its the replacement for the personal exemptions and deductions from the income tax.

It's a far better idea than trying to write reams of rules to say that A, B, and C are tax-free "necessities", and D, E, and F are taxable "luxuries". After all, even a "necessity" becomes a "luxury" if you get enough of it...