It will change to the extent that only retail purchases as well as services will be taxed under the NRST. It will also change in that you will no longer be deducting these expenses from your taxes due. Instead you will be recouping money spent by your employees for taxes, and reimbursed by you, rather than paying taxes quarterly or monthly. Your deductions recover only the portion of your taxes which correspond to your tax rate. The rest you pay.
Right now at the end of the year I add up all the expenses in various categories and enter these expenses as line items on my corporate tax form. The government is not involved in evaluating each meal, hotel bill, plane ticket, etc and does not have a record of these individual items.
It is obvious you have never been audited by the IRS. You may not have to send the receipts to the government with your return but you must keep them in order to validate the deduction if you are audited. Even those things under $75 which do not require a receipt must be listed, described and dated. Anything you list as a business expense must be verified by the records you keep if you take a deduction for them. I listed many of them in the previous post to you.
Considering all that must be kept to verify deductions, all that must be reported about your business and about you and your family to the IRS now, it is baffling to me that you think a trail of what your business purchased of retail items and services is more intrusive and revealing of you and your business. Not only does the IRS insist on knowing more about your business now than the NRST would reveal but it also knows almost you and your family's history and activities through the personal income tax forms you must file and records you must keep.
To insist that all that is less cumbersome than keeping receipts for only NRST taxable items just seems unbelievable to me.
It is baffling to me that you think:
Travel...$65,492 (appearing on a line on a tax return)
is less obtrusive than:
a complete list of each hotel name, location, dates stayed, employee name, amount paid for each of 311 hotel room stays, 103 airplane tickets purchased, 66 cars rented, etc.
Of course I need to keep these records to handle and audit and I do keep these records. But every single business in Americ doesn't have to provide this level of detail to the IRS, only those that are audited. The number that are audited is very low.
It is the FairTax proponents who are claiming a big savings in compliance-- as a small business owner, I don't see the savings, I think it will cost more to get these rebates and take more time.
And there is no doubt that the Happy Tax Compliance Authority (we're the friendly tax collectors!) will have a lot more detail than they have now. This is more intrusive.