[Route66]

"Only a small amount of imagination needed: imagine I pull up behind a truck at the side of the road in a rural area. The truck contains merchandise that was bought wholesale maybe right even on the dock in L.A. What will stop me from buying and not paying the sales tax?"

Unless the goods are smuggled in or you are dealing with someone selling stolen goods, you will have to purchase from a legitimate company. All our suppliers require our tax ID numbers before selling us goods for resale. You sign a form declaring they are for resale and that you will collect required taxes when you sell them.

I you never send in any taxes and you buy goods wholesale, they will come looking for you.

[palmer]

Unless the goods are smuggled in or you are dealing with someone selling stolen goods, you will have to purchase from a legitimate company. All our suppliers require our tax ID numbers before selling us goods for resale. You sign a form declaring they are for resale and that you will collect required taxes when you sell them. I you never send in any taxes and you buy goods wholesale, they will come looking for you.

That makes sense. What if I manufacture goods in my cottage industry? I buy lots of handcrafted items at the flea market directly from the maker. If I knew them better I could special order and pick them up at his house. Are we going to send out federal agents to do this to make sure these people charge tax? How is that less intrusive than employers witholding income tax?

Also, how will I buy ammo from a private seller or small retailer without the government tracking it?