How is the tax collected?
Retail businesses collect the tax from the consumer, just as state sales tax systems already do in 45 states; the FairTax is simply an additional line on the current sales tax reporting form. Retailers simply collect the tax and send it to the state taxing authority. All businesses serving as collection agents receive a fee for collection, and the states also receive a collection fee. The tax revenues from the states are then sent to the U.S. Treasury.
Related Questions
- In the eventuality of the builder having collected the tax but not paying to the government or being unable to pay, whether the ST Department can recover the same from the buyer of flat?
- Why aren’t taxes automatically collected from wages and salary avoiding the complicated tax forms?
- Who determines how much business revitalization zone tax is collected?
