from watching c-span this NRST aka fair tax will also tax SERVICES which are not taxed now.
Thus Dr. Services, Legal Services, and any other service will be taxed which was not taxed before.
HA! You think when you hire a plumber he hasn't factored his taxes into his hourly rate?
Services presently add their payroll taxes and income taxes, personal and business to their cost structure, as well as those passed on from their suppliers and contractors.
When we pay for services we are paying these embedded taxes but they are not listed or broken down, they are not visible to us.
The FairTax ***replaces*** these taxes that we do not presently see.
So when you say the NRST will tax services which are not taxed now, you are mistating it.
The correct statement is:
“... from watching c-span this NRST aka fair tax will also tax SERVICES which are not taxed EXPLICITLY now.”
But keep in mind the FairTax only applies to the consumer, not the business itself. For example, a builder will not pay the NRST to his lumber supplier, the lumber supplier will not pay an NRST to the lumber transport provider or the lumber mill, etc.
The FairTax rolls all the federal embedded taxes up into one retail level tax. It does not relieve anyone from having to pay taxes, it merely changes the process of tax collection, to make it more efficient, less intrusive, less prone to abuse or manipulation. It also enables American manufacturing to be more competitive overseas where there is no NRST.
The only shock imposed by the FairTax is that it will make hidden federal taxation visible to the consumer for the first time since 1913. Even when price stability is established and the amount of purchases are the same, the consumer will see federal taxation at every purchase. This will be a reoccurring reminder to the electorate of the level of federal taxation.