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The only way you are not taxed is if you have a tax exemption that you are going to collect tax on the other end of the sale. There are mark up through the supply chain process and sometimes those include taxes.
it is a bit convoluted.
No, buy cotton for thread, that cotton sale isn't taxed. The sale of thread to a sheet maker isn't taxed. The sales of sheets by the fabric maker to a wholesaler isn't taxed. If that wholesaler sells sheets to best buy, that sale isn't taxed. It's only taxed at the point of sale to the final consumer, which is at Best Buy. The exemption doesn't mean the person getting it on the purchase has to charge on the sale. That might be generally true, but it's often not.
There are some costs in that process that are taxed. Machinery to make sheets might be taxed, depending on the state, the machinery, etc. but that sale of machinery to the sheet maker is the final sale, and that machinery is consumed by the manufacturer.
A VAT tax is like in europe. They charge a federal income tax and the vat tax is on top of it.
this is on top of any local sales taxes as well.
The VAT functions like a sales tax, and is a tax on final consumption. The mechanics are different and it does a BETTER job of excluding inputs and business transactions, but it's just a sales tax by a different name in who pays it and on what. And there are no "local" sales taxes in countries that charge VAT. There is a local VAT.
It would be quite easy (in theory) to design a sales tax and VAT that collect identical amounts from the same final consumer.
the FAIR tax is completely different. yes it is a national sales tax but it eliminates the federal income tax competely. It also eliminates payroll taxes as well.
Also a family only pays sales tax on anything above the poverty level for their family size.
Also the tax only applies to new items. It doesn't affect used items which most lower income people already purchase.
SO if you buy a used car you don't pay the tax. if you buy a new car you would.
If you buy a old home you pay no sales tax if you buy a new home you would.
It also gets rid of supply chain taxes that add to the cost.
OK, those are differences, but as you say up front - "yes it is a national sales tax." That's right - it's a national sales tax and this tax has different exemptions, etc. than existing sales taxes, but it's a sales tax.