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And let yourself be audited frequently for compliance as businesses under a retail sales tax get to do.

I would set up a website called I-Review-Stuff.com. On this site I would have long-term reviews of all sorts of stuff: cars, computers, appliances, etc. I would put Google AdWords advertising on it to generate some revenue stream - although not nearly enough to be profitable. All of the stuff I review I could buy tax free.

This is a completely legitimate business (although not a very successful one) and all of my purchases are legitimate expenses for that business. I wouldn't collect any sales tax - my revenues (what little there are) are all from Google - so I wouldn't even enter the collection radar.

I would set up a website called I-Review-Stuff.com. On this site I would have long-term reviews of all sorts of stuff: cars, computers, appliances, etc. I would put Google AdWords advertising on it to generate some revenue stream - although not nearly enough to be profitable. All of the stuff I review I could buy tax free.

As long as you meet engaged in for profit status, Go for it.

H.R.25

Fair Tax Act of 2005 (Introduced in House)
http://thomas.loc.gov/cgi-bin/query/z?c109:H.R.25:

`SEC. 701. HOBBY ACTIVITIES.

`(a) Hobby Activities- Neither the exemption afforded by section 102 for intermediate sales nor the credits available pursuant to section 202 or 203 shall be available for any taxable property or service purchased for use in an activity if that activity is not engaged in for-profit.
`(b) Status Deemed- If the activity has received gross payments for the sale of taxable property or services that exceed the sum of--

`(1) taxable property and services purchased;

`(2) wages and salary paid; and

`(3) taxes (of any type) paid,

in 2 or more of the most recent 3 calendar years during which it operated when the business activity shall be conclusively deemed to be engaged in for profit.

. I wouldn't collect any sales tax - my revenues (what little there are) are all from Google - so I wouldn't even enter the collection radar.

LOL, no sales no sales tax, only problem is, no certification as a business to purchase tax free either.

It that qualification to purchase tax free that puts you in the radar beam.

This is a completely legitimate business (although not a very successful one)...
Why does it matter if it's successful unless the state (turned federal) sales tax authority also audits your income VS sales?

The Fairtax would be a huge asset to money laundering since the government wouldn't care or audit where your income is from.