“Imagine the FairTax possibilities for a business like this
http://www.dinnersready.com/privateparties.aspx
Call the business a school, food becomes educational supplies, and voila, meal preparation is convenient, trouble and tax free.”
Oh yes, that would be real hard to crack down on. There are some real concerns about compliance and I think the FT would present a new set of enforcement challenges, but this is one of the weaker examples I have seen.
However, the two biggest laughers are still:
1. They’ll be smuggling real estate in across the borders!
2. Shopping centers will go dark while everyone is buying all their “stuff” off the back of semis parked in parking lots.
Yours has a way to go to rival those two IMHO.
I think it has some real possibilities. Back in the days when I was putting myself through school making jewelry, I needed a resale number to avoid paying the sales tax. Under the FairTax, all I'd need is a student ID.