[lewislynn]

Strange, I can't seem to find that either in the Constitution, or in the Federalist Papers.

Could you provide us with a reference, and quotation of such?

Try this one:

from HR2525:

`SEC. 703. GOVERNMENT PURCHASES.

`(a) GOVERNMENT PURCHASES-

`(1) PURCHASES BY THE FEDERAL GOVERNMENT- Purchases by the Federal Government of taxable property and services shall be subject to the tax imposed by section 101.

Then this from:Wisconson Dept. of Revenue:

Sales of goods and services to the federal government or to any of its incorporated or unincorporated agencies or instrumentalities are exempt from the sales tax. Taxing purchases by the federal government would violate the U.S. Constitution, so the fiscal effect of this exemption has not been estimated.

[ancient_geezer]

True a state may not lay a tax on federal purchases, as that would violate federal authority.

That does not however prevent the federal government from taxing its own entities.

This is a Federal tax, taxing consumption of its own Federal agencies. There is no violation of State autonomy by the Federal authority, nor Federal autonomy by a state authority.