[palmer]

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.

If everyone complies, then any retailer can simply sell anonymously. But if some bad apples start to sell smuggled nails from the back of their truck, then the government may start tracking trucks and nail making equipment. That still might not apply to ammo though as long as there are legitimate dealers. I am simply worrying that in their zeal to track everything especially benign things, they will develop the ability to track everything to the purchaser. I can't say specifically how because I don't know how. But I do know that tracking would be necessary to stop the black market.

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

Fair enough, but just keep in mind some craftsmen I deal use use home made materials that can't be tracked so the new I.R.S. would inevitably suspect them of cheating (selling untaxed or lower taxed units) and send out agents to test their compliance. This could quickly devolve into big government vs the little guy.

[Route66]

I understand your concerns - I have them, too. I would not want the feds coming to audit my business all the time because they think I should be turning in more sales tax revenue. My sales figures can vary widely from month to month and I would hate for something as simple as a drop in sales to automatically flag me for an audit.

But - I really, really, really HATE the income tax and the payroll tax. The burden those taxes and the paperwork generated by them places on my business (and of course all of us personally)is awful. I wonder if this system could be any worse. Unless it involves constant accounting of my inventory, probably not.