Anyone who purchases would be subject to the consumption tax - no exemptions - even the govenment would be subject so there aren't any exceptions. Of course it's only on new goods at retail - so used items (like used cars) would not be taxed. Items/materials bought to manufacture goods would not be taxed (they aren't now anyway). Also, all services would be taxed (even stuff like medical care which isn't currently taxed) and yes, churches and charitable institutions would have to pay the same consumption tax as everyone else on new goods at retail. What makes this work is that everyone pays - when there are exceptions it provides a soapbox for K Street lobbiest - one of the problems with our current tax codes and system (and they have been the most vocal against it, as to be expected).

The IRS will mostly be abolished - however there is a need to manage the prebate and social security eligibilities (the same monies will need to be calculated based on income and set aside - the difference is that instead of paying a tax towards it, the funds would come from the general tax budget) so many will still have jobs. H&R Block and those other companies will either adapt to a new business or go away, but do you really care? Most accountants will tell you that they'd rather be spending their time at other tasks besides figuring out the complicated tax codes. I don't see a negative there.

-- John