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.
Yes. Most States are that way I believe.
State sales tax income is based on a percentage of the retail price. On a $100 retail item in Illinois, for example, my state collects $6.75 today.
Under the Fair Tax, the retail "cost" of the item drops to $77 and the Fair Tax of $23 is added, making the retail price I pay at the checkout the same as before. Now, does my state apply their 6.75% tax to the $77 or the $100?
I think you see where I'm going. If I buy a computer for business under the Fair Tax, I avoid the Fair Tax. But doesn't the state lose money?