Getting afield from the Forum but the only way to make a Fair Tax/consumption tax work is to apply the tax at invoicing from the Manufacturer, importer, Distributor. Which ever is the entity before the product hits the Retailer. There would still be fraud but This greatly reduces the number of entities that would need to be monitored for collections.this is the biggest drawback to the FAIR TAX that I see. It puts the store in the mode of tax collector, and there is very little oversight. The only way I see FAIR TAX working is to go to a cashless society, where every transaction is done electronically, and the sales taxes are collected at the bank, not the merchant.
Also known as a Value Added Tax.