Stuff is only taxed at retail. How hard is that?
The way I understand it, only individuals would be taxed at the retail level and not businesses. Therefore, individuals desiring to avoid the tax will attempt to establish "businesses" to do so. Rules and regulations defining business activity will be needed and someone will need to "police" compliance with these rules.
Simple, huh? It creates a situation not much different than what we have now regarding chasing tax cheaters, or avoiders, dedending on which side of the fence you're on. No system is perfect and there will always be people out there trying to bend the rules to their favor. Since that's a given, someone has to police the actual activity and taxes reported.
The speed limit sign can say 55 but you still need a policeman with a radar gun to catch the speeders.
OK, I buy cars for my employees, that is a business to business transaction so it would not be tax right? What if I buy grocercies for my employees? What if I buy a house for my employees? If employer provide all essentials to employees, virtually all sales tax could be avoided. You could say the same about only income is taxed, how hard is that? There are billions of transaction each year, the trick will be deciding what is retail and what isn't and how to close loopholes. I would wager everything I have that this will not be an easy task.