[MrB]

They collect city and state sales tax now, don’t they?
I don’t see where their inventory, spoiled product, etc are getting audited by the city and state.

[kitchen]

Sidestepped the questions, didn't we?

There's no difference between a 2% and a 29% tax that would encourage the federal government to want to ensure compliance? As for lost product, yes, there are procedures enforced to account for the discrepancies.