The classical school emphasizes production of goods and services as the key focus of economic analysis. Neoclassical economics focuses on how individuals operate within an economy. As such, the neoclassical school emphasizes the exchange of goods and services as the key focus of economic analysis.. (Source : Difference Between Classical & Neoclassical Economics | eHow) Here's information about the dates of emergence of neoclassical economics:
A random sampling of other states indicates the issue is mixed. For example, Illinois taxes the equipment if it is used in a manufacturing process. In Maine, there is no exemption. In Connecticut, all fire safety equipment is exempt.
These items are exempt from VAT so are not taxable. You do not include sales of exempt goods or services in your taxable turnover for VAT purposes. And if you buy exempt items, there is no VAT to reclaim. Exempt items are different from zero-rated supplies. In both cases VAT is not added to the selling price, but zero-rated goods or services are taxable for VAT - at 0%.