BWAHAHAHAHA!
Plus another 100 miilion individuals who will legitimately start up their own side business in order to purchase tax-free goods and services.
That new Mercedes and computer and iPhone and HDTV will be for "business" purposes, resulting in a savings of close to 40% (Fair Tax plus state and local taxes).
BTW if you do not have a business under the current code you are wasting money foolishly.
(pssst! people already do that- but don’t tell anyone, it’s a secret.)
Oh, by the way- business related goods for use or consumption in doing business are indeed taxed, unless you plan to resell them at retail. That’s the only tax-free purchase you’re allowed to make.
At least, that’s how the sales tax works in FL.
Buying something for use in your business does not make it exempt from sales tax. Buying something that you resell to another business is exempt.
People already evade income taxes by falsely claiming business expenses and mischaracterizing personal transactions. The Fair Tax addresses how taxes are collected; it cannot and does not address taxpayer morality.