if a retailer doesn't make any profit he'd still have to pay taxes?
Yes, if he spends money that he didn't earn.... (?!?)
"if a retailer doesn't make any profit he'd still have to pay taxes?"
-- Under the FairTax, he would merely remit what he collected from his customers. How it will work is that the government will take 23% of total sales, not profits. It is up to the retailer to charge enough to compensate themselves. If that ends up being even, then you have no profit. If you make a profit, you don't even have to tell the government, jsut keep it for yourself. So as soon as you give the government 23% of your sales, your done dealing with taxes.