Right now, employers take out taxes before the employee gets his hands on the money. The employer will not risk losing his business for the economic benefit of one of his workers.
With a 23% Federal sales tax, each buyer will have to decide if it is better to buy goods and services "retail" or "under the table" for a 17% savings after the illegal seller gets his 5% cut for selling "under the table".
Governments have been around for something like 6,000 years - since the time of the ancient Sumerians and all governments tax in some manner since they themselves intrinsically have no money ... so what???
Exactly. And for all those years, governments have been battling black market tax evasion. Income taxes, and therefore income tax evasion, is, historically, a recent invention.
If you think that the disappearance of the Income Tax means the disappearance of the Tax Police, you will be in for quite a shock.
The Tax Police hold a news conference in Moscow. Igor Tabakov, photographer.
Your post shows nothing about black market sales nor has any definitive paper ever been presented that delineates the "black market".
Your claim that taxpayers would buy things by bribing a merchant with, say, a 5% bribe holds little credence since the seller would under the law still be liable for the full 23% tax. Why should he risk his business for a measly 5% to help you (or anyone else for that matter) when the 23% is not paid for by the merchant but by the buyer - and the merchant has agreed in writing to collect the tax and is paid to do so. That would be theft of government funds.
Claiming there will be large scale black market activity is all you've done. No one has ever shown this to be a real consideration as most folks are fairly honest and, after all, their effective FairTax rate will be lower than the income tax rates they now pay. Due to that it's far more likely that any black market or any other sort of tax evasion is being done now since it is more profitable to the "doer".