You don't understand what self reporting or third party reporting means.
What is the purpose of 3rd party reporting?
Isn't that accomplished under the nrst (even if you choose to call it something else?)
Yes it is.
You don't understand what self reporting or third party reporting means
What I do understand is the total dependance on accurate self reporting of the current income system guarantees massive tax evasion for maximum gain on unreported cash transactions.
What I do understand is legal businesses do not pay taxes on their purchases which are tracked through their suppliers via their certification.
What I do understand is an illegal business ends up paying taxes on its inputs to avoid monitoring, to minimize its exposure and thus essensially becomes a resale business selling things already having been taxed once and thus not subject to the retail sales tax under the provisions of the FairTax legislation. Course such folk might have abit of problems with competing with legitimate businesses operating with tax exemption in aquiring its products for retail sale.
Only new production, first retail sale products are taxable and thus of concern to the retail sales tax system under the FairTax.
Resold, previously taxed products are not subject to the tax and thus of no concern. Such an operation is not required to collect nor remit or reportthe NRST implemented by the FairTax legislation nor do they make much in a competitive environment where the legitimate seller exempt on their purchases.
Only a certified business subject to monitoring both of itself directly by internal audit, by its suppliers through sales records maintained on exempt purchasers, not to mention customers a the business is required to issue full receipts to, thus creating a large pool of witnesses to sale of any business looking to make a living short changing the government and stealing taxpayer dollars from their customers.
Of the two systems, income tax with nil protections from and maximum gains by the fly by night cash operator, and a retail sales tax system designed to monitor business purchasing as well as retail sales to assure maximum compliance with a system that only taxes products once. The NRST implemented by the FairTax will outdo the current system by large factor in minimizing gain of the sharp operator while maximizing his risks.