True, but folks will try to buy wholesale (no tax) and sell as used (no tax). How will someone track that? And it will need to be tracked.
There, will, unfortunately, still be a role for the IRS.
The “role” of the IRS (it will be renamed!) under the FAIRtax will be to ensure that each state collects, accounts for and remits the proper amount of taxes each reporting period.
Policing of sales tax FRaud will be the job of the individual states, and they will be paid for their efforts.