Goods and Services Subject to the FairTax
Few things incite as much concern and confusion as what goods and services the FairTax would actually be calculated on. But it’s within these rules that the FairTax’s authors have perhaps made the most progress in creating a tax system that is truly fair (i.e., doesn’t favor certain industries or classes of people), though it still seems to favor business owners slightly.
As you read through the explanations of what is and isn’t taxable under the FairTax system, remember the goal is to tax things only once at the consumer level. Goods and services purchased in the course of business are not taxed until they are actually sold to the consumer or used for nonbusiness purposes.
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