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Q: |
Won’t people simply avoid the tax by trading and bartering rather than purchasing?
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A: |
No, they won’t. This seems like a lot of trouble to go to simply to avoid the tax, but the real answer is that trading or bartering won’t exempt people from tax liability. Section 103(f) of the FairTax states clearly that if payment for goods or services is made with something other than money, whomever would have been responsible for remitting the tax if money had been used is still responsible for remitting the tax on the fair market value of the goods or services purchased. |
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