Post on #5...
All business to business taxes ARE eliminated completely under FairTax. This is not a VAT tax. It is on new goods and services only, and ONLY at the end use retail level. Every business will receive a tax-exempt number to purchase business needs, declare their tax exempt number at the time of purchases, and honesty and a little inventory tracking, like today, will insure those items purchased tax free are actually going into the business. Just like 45 States already do. Only end use retailers will charge the 30% and remit it to the State with their State Sales tax, using the same income figures for both. It's as simple as that.
ALL Corporate, Business, and Self employment taxes are gone, All AMT taxes are gone, ALL FICA matching payments are gone to employers.
ALL FICA and withholding is gone for individuals too. And finally the death and gift tax is gone.
All's right with the world under FairTax.
witchypooy@aol.com
I'm in one of the states that allows some exemptions. Some transactions are taxable, while some are not. For example, you can't get an exemption when you upgrade your office with fancy furniture & the like. Record keeping to do this can get complicated & that has a cost.
Then there's the reeducation of the population that would be needed, cuz most people still think that businesses pay taxes. There is no way you'd be able to get the exempt status without people screaming about tax loopholes being given to those big, greedy corporations.
Is tuition to be taxed too?