The threshold for folks to attain and continue the use of that certification is actual sales for which the NRST is being collected and remitted by the business.No it's not. It's any business. Robertpaulsen's "one-man 'consulting' firm" consults for other businesses. He has no retail sales.
Too little NRST flowing from a "business" with large claims of input purchases is one big red flag for an audit to assure the integrity of those claims.But how would you know his inputs unless every business, not just retail businesses filed paperwork showing their sales.
If one want to avoid paying the NRST on something like a computer it would be far less risk involved to just go buy a used one with no NRST in the first place, same is true of many such items that are targets for abuse.A used computer? Geez, you really are ancient. Robertpausen is smart enough to buy a new "white box" PC from a "wholesaler," (his cousin who only sells to family).
When all is said and done, I see no reason to believe there will be any increase of such evasions beyond what already exists and is accounted for in the NRST rate.It ain't called the FairytaleTax for nuthin'!
Robertpaulsen's "one-man 'consulting' firm" consults for other businesses. He has no retail sales.---
--- how would you know his inputs unless every business, not just retail businesses filed paperwork showing their sales.
Learn to read the cites quoted:
"The FairTax requires all businesses (including non-retailers) to keep business records kept in the ordinary course of business that would aid cross checking by government auditors.[22]
Conclusion
Tax evasion will undoubtedly be a problem under any tax system. It is a major and growing problem under the current tax system, despite very substantial efforts and increasingly harsh treatment of the taxpaying public. Almost 40 percent of the public, according to the IRS, is out of compliance with the present tax system, mostly unintentionally due to the enormous complexity of the present system.
This breeds disrespect for the tax system and the law, and makes a system based on taxpayer self-assessment less and less viable.
The FairTax is likely to reduce rather than exacerbate the problem of tax evasion. The increased fairness, transparency, and legitimacy of the system will induce more compliance. The roughly 85 to 90 percent reduction in filers will enable tax administrators to address instances of noncompliance more effectively, and increase the likelihood that tax evasion will be discovered.
The relative simplicity of the FairTax will promote compliance.
Businesses will need to answer one question to determine the tax due: how much was sold to consumers? Finally, the dramatic reduction in marginal tax rates will reduce the gains from tax evasion. If the cost of noncompliance remains comparable (or even increases due to the increased likelihood of getting caught caused by the much smaller number of filers), then both the expected profit from and frequency of tax evasion will decline."
It ain't called the FairytaleTax for nuthin'!
Yet for you two, the 'fairytale tax' is a nightmare... Why is that?
Ricebowl problems, I'd bet..