[Badray]

One of the penalties for fraudulent use of a tax exempt certificate is permanent loss of the certificate even for legitimate business purchases.

Will some people risk it? Sure. Enough to worry about it? No.

There is massive fraud and abuse now. There will always be cheaters. It will be tougher to cheat with the FairTax. The retailer will not be the one to check on the tax exempt claim. Those subject to audits will be reduced from 140 million to about 15 or 20 million. Cheaters will get scrutiny. Don't worry about.

[robertpaulsen]

"Those subject to audits will be reduced from 140 million to about 15 or 20 million."

Audits by who? Not the IRS. They're gone.

[robertpaulsen]

First time I've seen these numbers.

140 million = # of individuals plus businesses? 20 million = # of large business retail outlets plus small corporations (one storefront) plus Subchapter S one-man businesses?

You realize that the Subchapter S businesses will grow dramatically?