I know what a VAT is, and I don’t like it, primarily for its huge administrative overhead cost, which you so neatly pointed out. Each level of taxation imposes an administrative burden to the company that the FairTax simply does not.
You must realize that ALL taxes are paid by the final consumer. If you deny that fact, then we cannot have this discussion.
The FairTax is no more prone to “cheating” than the VAT. In both cases, it requires at least a two-party conspiracy, and there is a paperwork trail that the law can follow.
Please drop the idea of a VAT and throw your support behind the FairTax.
The furniture company buys from the lumber company and gets taxed. How is that an administrative burden? If you’re selling, then you’re collecting taxes. Why should Joe’s restaurant have to do it and not Joe’s Lumber Yard. It doesn’t make sense to me that it’s any different.
If I buy something and get taxed, there’s no administrative burden on me. If I sell something and get taxed, then my burden is no different than any other seller.
I don’t see that it’s onerous.
What is onerous is exemptions granted at the end point of sale. An exemption MUST be granted to Churches, for example, because it’s unconstitutional to tax them. They are permitted free exercise, and if the government takes away any of their money, then it’s not free. It’s inhibited.