Under the current system, the underground economy is taxed (remember all those hidden taxes) everytime a retail purchase is made. If the underground economy expands to evade the high FairTax rate, perhaps even less tax will be collected from black market activity.
We've been round and round this mulberry bush so many times I'm sick of it!
Why do you people continue to post this lie when you KNOW it's a lie?
Is keeping the communist inspired, class warfare, social engineering enabling income tax THAT important to you?
So am I sick of the FairTaxers both claiming that, hidden taxes embedded in every item we purchase are significant and burdensome, and that it doesn't amount to a hill of beans when ill gotten gains go shopping.
Why do you people continue to post this lie when you KNOW it's a lie?
What is the lie? The logical expectation that the black market will grow? That those in the black market pay no income tax now and will pay no income tax under the FairTax?
Is keeping the communist inspired, class warfare, social engineering enabling income tax THAT important to you?
Oh please don't tell me that you think the FairTax avoids social engineering.
I don't hate so much that I am willing to cut off my nose to spite my face.
Many of the FairTaxer's arguments come off sounding retaliatory; don't like big government spending - arrange purchases to avoid taxes (of course that nullifies the "people spend no matter what" argument). Strike out against them K Street lobbyists representing big business seeking government favors (does that sound like class warfare?), support the FairTax. Make those illegals pay (maybe they'll go home), support the FairTax.
The problem is that the FairTax does not address any of those issues.
Well, mostly because it's not a lie. You may not like what we have to say on the topic, but what we say is truthful:
the FairTax will encourage a shift from legitimate economic activity to underground economic activity; no currently underground activity will be shifted to the legitimate economy.
All the FairTax does is shift the point of taxation from money entering the underground economy to money exiting the illegal economy.
All the money that enters the illegal economy is now taxed ... even if it subsequently leaves the US. Under the FairTax, all the money entering the illegal economy will be untaxed, and if it leaves the US will be NEVER taxed.