[Your Nightmare]

BTW, the PCE includes the expenditures of nonprofits (e.g., churches, charities, etc.). Does you defense in the accuracy of the PCE mean you are admitting that churches and other charities will be paying the FairTax unless their purchase is for resale?

[ancient_geezer]

What to admit, the legislative language lays out the rules very clearly.

If the purchase by a non-profit its for their own final consumption, yes they pay the tax the same as any other consumer.

Same is true for a small business with mixed use and converted assets.

The contribution to the non-profit is not taxable, same as contributions to non-profits are not taxed in the current system.

Likewise, the charitable services or goods of the non-profit are untaxed. However if the goods or services are consumed by those in the non-profit organization as final consumers, yes their purchase of such goods is taxable same as for everyone else.

Obviously conversion of assets to personal consumption is a taxable event in the retail sales tax implemented under the FairTax.