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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?

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?

Home based businesses are SUPPOSE to get a tax ID number already! If you sell, you're suppose to collect sales tax on it. Flea markets in NY require a tax ID number.

"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?"

I'm just today contemplating all this and trying to figure out all the angles, but let me try a couple of these questions.

How is this less intrusive than the current witholding system? For businesses it isn't. If business owners are stuck being the collectors, they will be the targets of the enforcers. If it is based on receipt totals the record keeping should not be a problem for me. I would be concerned if I had to provide a lot of inventory purchase and sales details on a regular basis.

If sales totals are all that must be reported, they should not know who buys what. If you are still able to buy ammo or whatever for cash, there will be no record with the retailer you purchased from other than a cash receipt.

People such as crafters who make things for resale should simply be considered wholesalers. The people they sell to should be required to collect the tax when the item is sold. If they sell directly to the public, they are a retailer and probably will be required to collect the tax. I think that's fair, though potential for abuse of this is obvious among people who don't have a regular place of business.