The FairTax may not be perfect, but it is a huge improvement over the current system and significantly better than alternative reform proposals. For many of us, that is good enough to get our support.>>>>>>>>>>>>
I will support it in a heartbeat, I just have some questions about the details and what the practical effects will be. Some have interpreted the bill to mean that there would never be any tax on sales of used items of any kind, even if sold by a business. If this were the actual case I think I would instantly go into the business of buying and selling used furniture or something similiar, I have experience in this sort of thing already. I suspect that in reality sales between individuals would not be taxed but sales by businesses specializing in used items would be taxed.
"I suspect that in reality sales between individuals would not be taxed but sales by businesses specializing in used items would be taxed."
That would violate one of he fundamental principles of the FairTax, which is that a product is taxed once and only once during its life cycle.
" I suspect that in reality sales between individuals would not be taxed but sales by businesses specializing in used items would be taxed."
I'm not positive, but I would bet that the business specializing in this type of venture would either 1) pay the NRST on all of the items the need to run their business, since they would be the final consumer or 2) register as a business, become exempt from NRST on their purchases, then be responsible for the NRST on the service they provide. In other words, they either pay the NRST on the new goods they purchase or they charge their customers for the service and then collect the appropriate tax.