There are trillions of dollars out there in assets on which income taxes have already been paid.
When those dollars are spent they need to be exempt from the consumption tax unless you want to sell everyone on double taxation. Those dollars won’t be spent in our lifetimes so your notion of a short transition is out.
Cashback credit cards do this routinely. Receipts showing detail are automated just as they are for elderly and disabled on EBT/Snap. All the accounting is by computer. Merchants don’t need to do anything.
LOL. It’s all done by computer, not by the merchants’ IT systems. Whatever.
You said:
”Each purchase can calculate how much tax is owed based on exempt versus non-exempt dollars used. The tax can be reduced as a matter of course depending whether rebate limits have been reached. Rebates can be done real-time.”
The computers will “handle it.”
It could possibly happen following a real Storm the Bastille type revolution.
Of course, if we reboot everything and start from scratch a consumption tax should be on the table. Until then there’s a real world where we live.
> “There are trillions of dollars out there in assets on which income taxes have already been paid.”
> “When those dollars are spent they need to be exempt from the consumption tax unless you want to sell everyone on double taxation.”
That’s exactly what I’ve been posting. Assets previously taxed should be exempt from FairTax. Same as inventory on the shelves that were produced during the Income Tax Era.
All of these Income Rax Era assets and products should be transacted free from any further taxation. They are transitory. Once they’re gone, they’re gone!