Furthermore, the Federal government would also have to pay any state and local sales taxes in the municipality their located in.What makes you think that?
That is patently false. Have you ever heard of transaction/collection costs? It only may be a few pennies on the dollar under the FairTax, but that still means that (with a 5% transaction/collection cost) $1 spent = $.95 in revenues.This is patently false. The collection costs are .25% for the business and .25% for the state. 99.5% goes back to the federal government. $1 spent = $.995 in revenues.
Still awaiting your positive alternative to the NRST.
*crickets*