I am not sure the law says that. Leasing is currently used by corps to get and double tax deduction. One for the expense of the lease by the renit corp and twice by the corp that takes the depreciaation.
I think we would see all sorts of used gray markets. for instance, I make computer and rent it for one week. One week of 'value' is taxed at 23%. Since the computer has then depreciated it is used and I pay no tax. I think this would be hard to keep track of.
Also, I am sure that the level of *visible* goods and services at the retail level would go down and we would have to charge a higher rate. This has already happened with the income tax as more folks have opted out the workforce.
I am not sure the law says that.
I realize you don't understand, as you wrote, "lots of gobledygook". Nonetheless, SEC. 804 deals in part with not allowing a leased item being sold to circumvent paying the tax on the value of a new product. A $10,000 new car that has a $3,000 tax compared to a leased car sold six months into the lease. A portion of the lease payment is principle. Say for example $1,000. When the leased car is sold the fair market value would be about $9,000 and the tax applied to that. Also, the lease company remits a tax for it's lease services.
Also, I am sure that the level of *visible* goods and services at the retail level would go down and we would have to charge a higher rate.
Raising the tax rate will be very difficult. People back East in Western New York, Eire county, are hammering the county legislature for trying to raise the sales tax by 1/4 of one percent. I heard a similar scenario happened in Wisconsin dealing with the state sales tax. I think the visible goods and services would remain about the same with only minimal swing up or down.