[lewislynn]

Under a retail sales tax system designed to replace the federal tax revenues from all income and payroll taxes (business level as well as individual), the revene that is now collected from businesses financed through product sales would be collected from individuals purchasing for consumption, that would merely add to those lower producer level prices that are consequent to repleal of business taxes bringing the total (retail sales tax exise plus producer price) payment by individuals for consumption to a level equivalent to the prices paid by individuals before change over from a federal income/payroll tax sytem to a pure national retail sales tax system.

That is one long sentence...what the hell does it mean?

the revene that is now collected from businesses financed through product sales would be collected from individuals purchasing for consumption,

Otherwise known as double talk...Does that mean under the "pure national sales tax" it will be passed on to the consumer...like you claim it does now?

[ancient_geezer]

Does that mean under the "pure national sales tax" it will be passed on to the consumer...like you claim it does now?

No, for its not a vat, turnover, or business transfer tax which are just passed on to a consumer integrally embedded into pricing.

The FairTax NRST is a "pure national retail sales tax" tax collected at retail level only and directly from the consumer quite openly and visibly, the amount listed separately as a line item of the retail sales receipt just as retail sales taxes collected and receipted throughout the United States today.

 

H.R.25

Fair Tax Act of 2005 (Introduced in House)
http://thomas.loc.gov/cgi-bin/query/z?c109:H.R.25:

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`SEC. 510. TAX TO BE SEPARATELY STATED AND CHARGED.

`(a) In General- For each purchase of taxable property or services for which a tax is imposed by section 101, the seller shall charge the tax imposed by section 101 separately from the purchase. For purchase of taxable property or services for which a tax is imposed by section 101, the seller shall provide to the purchaser a receipt for each transaction that includes--

`(1) the property or services price exclusive of tax;

`(2) the amount of tax paid;

`(3) the property or service price inclusive of tax;

`(4) the tax rate (the amount of tax paid (per paragraph (2)) divided by the property or service price inclusive of tax (per paragraph (3));

`(5) the date that the good or service was sold;

`(6) the name of the vendor; and

`(7) the vendor registration number.

 

Since it is a "pure national retail sales tax", purchases for business and investment purposes are exempt from the NRST.

 

H.R.25

Fair Tax Act of 2005 (Introduced in House)
http://thomas.loc.gov/cgi-bin/query/z?c109:H.R.25:

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SEC. 101. IMPOSITION OF SALES TAX.

(d) Liability for Tax-

• • `(1) IN GENERAL- The person using or consuming taxable property or services in the United States is liable for the tax imposed by this section, except as provided in paragraph (2) of this subsection.

• • `(2) EXCEPTION WHERE TAX PAID TO SELLER- A person using or consuming a taxable property or service in the United States is not liable for the tax imposed by this section if the person pays the tax to a person selling the taxable property or service and receives from such person a purchaser's receipt within the meaning of section 510.

 

`SEC. 102. INTERMEDIATE AND EXPORT SALES.

`(a) In General- For purposes of this subtitle--

`(1) BUSINESS AND EXPORT PURPOSES- No tax shall be imposed under section 101 on any taxable property or service purchased for--

`(A) a business purpose in a trade or business, or

`(B) export from the United States for use or consumption outside the United States, if, the purchaser provided the seller with a registration certificate, and the seller was a wholesale seller.

`(2) INVESTMENT PURPOSE- No tax shall be imposed under section 101 on any taxable property or service purchased for an investment purpose and held exclusively for an investment purpose.

*** SNIP ***

`(b) Business Purposes- For purposes of this section, the term `purchased for a business purpose in a trade or business' means purchased by a person engaged in a trade or business and used in that trade or business--

`(1) for resale,

`(2) to produce, provide, render, or sell taxable property or services, or

`(3) in furtherance of other bona fide business purposes.

`(c) Investment Purposes- For purposes of this section, the term `purchased for an investment purpose' means property purchased exclusively for purposes of appreciation or the production of income but not entailing more than minor personal efforts.