"What business buys to produce a product."
Endless regulation to define a business and materials for producing a product. Legitimate business expenses are not now taxed so there is no change there. But defining these expenses requires pages of rules, regulations, and definitions. You've gained nothing.
"Endless regulation to define a business and materials for producing a product. Legitimate business expenses are not now taxed so there is no change there. But defining these expenses requires pages of rules, regulations, and definitions. You've gained nothing."
Not really. Businesses make expenditures for two basic purposes
1. personal consumption, typically on behalf of employees, or
2. business purposes.
That distinction isn't hard to make at all. It doesn't require "pages of rules, regulations and definitions".
Judging from the number of pages in the two systems at present, you would gain about a 99% simplification. You may consider that "nothing", but I don't think most people would agree with that.
You seem to miss the point that under the FairTax only end-consumption sales are taxed and not things used for or to produce consumer resales.
There are no "pages of rules, regulations, and definitions" and there ARE volumes of those in fact for the present system - called the Tax Code. They are so complex and voluminous that no one uncdrstands - not even the IRS.