Businesses such as farmers have been parsing their expenditures for income tax purposes for years. In your propane example, fuels used to heat the house or power the family car are not business expenses, while the farm related gas usage is fully deductible as a business expense from income before taxes are calculated. The IMPOSSIBLE you mention has been done by anyone who drives a company car. It is a pain in the butt, but is done every day.
I don’t believe any sensible proponent of the Fair Tax will tell you it is PERFECT, or without flaws. If you read my other posts here today, you will see I have a MAJOR problem with the PREBATE. But, I do believe the FT (substituting tax exemptions on food, meds, etc. for the prebate) is a smarter, fairer, & less corruptible method of financing the Federal Gov’t.
Is it now?
The trends depicted in the grapics below are the result of nothing more that governments, either purposefully or innocently, voting themselves small advantages over the private sector over time. Once that has occurred markets, over time, do the rest for them.
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