Are business to business transactions exempt under fair tax? If not, the numbers are wrong.
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
Are business to business transactions exempt under fair tax? If not, the numbers are wrong.
Business to business purchases are exempt. The NRST is levied only once on sales for final consumption of new goods and services, and not on purchases for business or investment purposes.
Everything except the final, new, retail sale is exempt. Used goods would be exempt, as would b2b transactions.
Mark