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To: Your Nightmare

Giving soup to the homeless by a church is certainly NOT a taxable event since that is the comfort and sustenance that is one of the things churches do as their "for busieness purposes". It is not taxed when purchased by the church assuming they use their exemption (and why would they not?) and is not taxed when given away since it is not sold (not "consumed" under the meaning of the bill).

Your example does not hold water (or soup).


632 posted on 04/13/2006 10:15:21 AM PDT by pigdog
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To: pigdog
Giving soup to the homeless by a church is certainly NOT a taxable event
I didn't say it was, did I?


the comfort and sustenance that is one of the things churches do as their "for busieness purposes".
That may be true. If it is it means that the FairTax doesn't tax all consumption. It also means they need to that amount out of the FairTax base used for calculating the rate.
635 posted on 04/13/2006 10:58:26 AM PDT by Your Nightmare
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