Note the exceptions are any trade or business that has employees. lewislynn wanted it to look like almost everybody was being taxed rather the miniscule category of household servants.Note that the exceptions don't include governments! Governments would be paying the FairTax on the wages of their employees (which is the point lewislynn was trying to make). This means your statement that "the FairTax (H.R.25) explicitly taxes only retail goods for consumption" is false.
Note that the exceptions don't include governments! Governments would be paying the FairTax on the wages of their employees (which is the point lewislynn was trying to make).
Having read and reread it appears that government employer will pay the sales tax on employees. I wonder if that is akin to the sales tax applied to a domestic servant that provides a service.