Do you have some crow handy, Lewis ? Once again you demonstrate that you don't really understand HR25.
[Services performed by an employee who is employed by (1) an employer in the regular course of
the employer’s trade or business, (2) a not-for-profit organization, (3) an employer that is a
government enterprise, and (4) taxable employers (i.e., government school districts and
universities) directly providing education and training are not taxable.]
From the Plain English Summary
http://www.fairtaxvolunteer.org/pdf/FairTax_Act_Summary.pdf#search='fairtax%20plain%20english'
Or the more cumberson text of HR25 in Sect 2(a)(14)(IV):
`(14) TAXABLE PROPERTY OR SERVICE-
`(A) GENERAL RULE- The term `taxable property or service' means--
`(i) any property (including leaseholds of any term or rents with respect to such property) but excluding--
`(I) intangible property, and
`(II) used property, and
`(ii) any service (including any financial intermediation services as determined by section 801).
`(B) SERVICE- For purposes of subparagraph (A), the term `service'--
`(i) shall include any service performed by an employee for which the employee is paid wages or a salary by a taxable employer, and
`(ii) shall not include any service performed by an employee for which the employee is paid wages or a salary--
`(I) by an employer in the regular course of the employer's trade or business,
`(II) by an employer that is a not-for-profit organization (as defined in section 706),
`(III) by an employer that is a government enterprise (as defined in section 704), and
`(IV) by taxable employers to employees directly providing education and training.
"... taxable employers ..." would be the local government, and "... employees directly providing education and training..." sure seems to describe school teachers.