Of course--but it can only be countered by means of new legislation. Each "dodge" will provoke new legislation. The result will be the same sort of complicated mess that we have today with income tax--and we'll still have income tax, to boot.
we can flag that business to be audited.
An audit will find nothing: the law doesn't say that a good's "new" price must be greater than its "used" price. A new law will be required to effect that.
Actually, my point was that this "dodge" would be still-born due to the minimum auditing practice I would expect from any State FairTax enforcement agency. I do not think it would be a matter of waiting for a new dodge to pop up and new legislation to counter it.
The simpicity of the FairTax means a relatively short set of regs to make it tight. Compared to the 60,000 pages the income tax code relies on.
No, it won't ... just a state sales tax aauditor who's been down this path or a very similar one with many present evaders.