Business may object to a consumption tax because it will increase the apparent cost of products purchased, even though consumers will have more money in their pockets as a result of simultaneously eliminating the withholding tax.
If business doesn’t rail at a consumption tax because of the apparent cost increase, they’ll certainly object to the used goods loophole because it expands the price gap between new and used goods.
Paranoid members of the business community may object to taxpayers having more money in their pockets and an indirect incentive to save because some of those consumers will use accumulated savings to start small businesses which will increase competition for existing businesses. And, they’d be right – one hope of consumption oriented taxation is that the economy will eventually see an increase in capital reserves, hopefully a consequent improvement in robustness (stability), and possibly an increase in new business formation.