So what is the $219 billion for "Religious and welfare activities" in the PCE? Either the FairTax taxes these nonprofit expenditures in the PCE or you've got yet another big hole in your FairTax base.
Operating expenses of charitable organizations that represent consumption.
If you need a hint, I'm pretty sure the authors of the FairTax were aware that the operating expenses of nonprofits was in the PCE when they left it in the FairTax base for rate calculation.
I bow to your analysis after checking to make sure that such consumption was not removed from the FairTax base calculations for tax rate:
http://www.fairtaxvolunteer.org/smart/tax_system.html
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Apparently the bill's language means, spending for consumption by a non-profit-institution must be taxed. And you are correct that all the internal consumption of even a not-for-profit organization must be taxed under the FairTax implementation of a retail sales tax. Once tax all taxable property and services once but only once as you have pointed out and as explictly stated in the principles of interpretation of the legislation.
Apparently the bill's language means, spending for consumption by a non-profit-institution must be taxed. And you are correct that all the internal consumption of even a not-for-profit organization must be taxed under the FairTax implementation of a retail sales tax. Once tax all taxable property and services once but only once as you have pointed out and as explictly stated in the principles of interpretation of the legislation.Thanks for being big enough to admit it. Now let's see if your cohort are that big.