[semimojo]

Boomers who can account for purchases through savings can receive rebate compensation.

How can I show that I paid for my TV with saved money vs. my paycheck when its all coming from the same account?

[bert]

Didn’t the IRS rule that savings on price was actually unearned taxable income?

[Hostage]

Read #43 for a general answer.

To the specific situation, say for example a farmer sells a chunk of his land to purchase a new tractor. That tractor price has a lot of embedded taxes in it that were paid to produce it and are passed on to the buyer.

So the farmer is paying a price that has hidden taxes in it.

After the FairTax is passed, a new tractor won’t have those embedded taxes. The farmer can apply for exemption from FairTax by claiming and documenting that a pre-FairTax equity sale was used for the purchase.

After a number of years in transition from Income Tax to FairTax, these type situations will disappear.

If you got an itch to hate on the FairTax, read #22 above.