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"In my example above, what price would the Feds see?....$25. And the tax on the $25 will be calculated correctly. The Feds will go on their way fat, dumb and happy, not knowing that they were cheated."

Have you ever heard of double entry bookkeeping? Are you aware that a set of books must balance? You DO understand that that $75 in cash will have to have an offsetting entry somewhere on the company's financials, right?

You are paranoid, friend.

You are paranoid, friend.

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Another Freeper put it best in his tagline. "Just because you're paranoid doesn't mean they're NOT out to get you."

Did you see my example earlier concerning used cars sold between private owners. Those prices are routinely reduced so as not to pay as much Sales Tax. I won't admit to having done it myself, but I've witnessed it MANY times. People do that with a Sales Tax rate of only 7%, think what they'd do if it were 30% (23% NST + 7% State Sales Tax)

Concerning my $100/$25 example: Sure, if that friend I mentioned in my example is an employee at a store, he can't easily do that for you. That's traceable. I'm talking about a store that's owner operated...a Ma and Pop type arrangement. In that case there would be no one to know that he got $100 for the item you bought. I NEVER mentioned that you paid any less than the $100 price for the item. You simply didn't pay full tax.

Be that as it may, like I've always told my kids, don't think ANY government bill, law or program will be a panacea. Before the ink is dry on any bill, SOMEONE, SOMEWHERE has figured out a way to cheat it. Mark my words, this one which you and other believers are touting so mightily is no different. You have very little faith in criminal human nature. Try and make it foolproof and they make smarter fools. I just think it plays to the bandwagon mentality.

I still say a LOW FLAT TAX with NO DEDUCTIONS is better. The mechanism (IRS) is already in place. Companies already know how to handle that. The NST adds a completely different monkey wrench into the mix. Let it Go.

He just doesn't understand that when the store purchased the item, they had to provide the supplier with their "Reseller Certificate" number. So anything odd at all in their sales reporting is going to trigger a check against their suppliers, where the State will notice that they paid their supplier a lot more than the $25 they claim they eventually sold it for. An occasional loss can be explained, but a pattern means jail. Ma & Pop are not going to risk it.