Am I correct that the actual bill does not include taxing these areas?
There is no provision to tax government for"capital" spending any more than it taxes business for such spending. Investments are not taxed ever.
It makes no provision for exempting the federal government from paying the tax on its consumption expenditure.
If there is no express exemption as is provided for business expenditure for business purpose (which is in the bill) the tax is levied with regard to the total payment tendered for consumption products. Even for business, final retail purchase that may be made for secondary purposes not related to conduct of their business, like picnic supplies for the company picnic, the NRST must be paid.
The only exemptions are those expressly provided for.
There is one situation where the Federal government is provide an exception and that is the collection of tax from itself in hiring contract labor for work with government agencies. But it must pay the tax to retail businesses for consumption products and misc services from outside vendors.
I saw nothing that seemed to provide for the taxing of federal government "consumption" or "capital expenditures" as was included by Mastromarco.
No "capital expenditures" are included in the sales tax base my Mastromarco, business or government. Capital expenditure is considered investment, not consumption. The same is true of the bill.
Table 1
Tax Base for National Sales Tax (billions of dollars)
Description of Taxable Item Tax Base (1995) Personal consumption expenditures $4,924.9 Purchases of new homes 156.4 Improvements to single-family homes 73.9 Imputed rent on housing -534.3 Additional financial intermediation services 53.0 Foreign travel by U.S. residents (one-half) -26.4 Expenditures abroad by U.S. residents -2.7 Food produced and consumed on farms -0.4 State and local government consumption 682.6 State and local government gross purchases 159.1 Federal government consumption 453.8 Federal government gross purchases 62.7 Less: Education expenditures -97.5 Plus: Expenditures in U.S. by nonresidents 73.1 NST Base $5,978.2 Source: National Income Product Accounts,
Survey of Current Business, August 1996.