"The fact that so many people immediately think increased black market activity when they hear the FairTax scheme rates indicates that it is a REAL CONSIDERATION. The fact that you recognize the potential is irrelevant."
It's not me that keeps regurgitating "black market" all the time (like its a furball) as though it were some serious consideration (or REAL CONSIDERATION as you put it). It certainly is not.
To sell legally the merchant must obtain a license to do so and this means the entity is subject to audit and must comply with the terms of the law or suffer the consequences. If he chooses to sell illegally, he's relatively easy pickings for the state tax folks.
Neither you nor anyone else has ever presented a serious study that defines any sort of "black market" activity as being anything but a minor amount financially (if that). And a seller intentionally violating the law will have many tools arrayed against him.
And there certainly aren't "so many" people thinking black market as you claim. The only ones I notice doing so are those like you who are trying to find any sort of tool to bash the FairTax with whether valid or not ... and not doing too well, I might add.
"Those two positions contradict eachother. "
The FairTax effective rate will be low for most people - lower that their income tax rate, but many of these taxpayers - and many of them will not have paid taxes before - will certainly notice the very obvious tax amount and some percentage of those will seek political action. There is no contradiction at all. Both things are true.
Of course, you mean like drug dealers do now. How silly of me - every merchant will set up shop on Main Street, will be legal, will have a certificate, and be audited.
Neither you nor anyone else has ever presented a serious study that defines any sort of "black market" activity as being anything but a minor amount financially (if that). And a seller intentionally violating the law will have many tools arrayed against him.
There you go again, its minor when we're talking about the virtues of the FairTax and huge when we're talking about taxes evaded by black market activity now.
And there certainly aren't "so many" people thinking black market as you claim. The only ones I notice doing so are those like you who are trying to find any sort of tool to bash the FairTax with whether valid or not ...
You've got the parts right, but in the wrong order - potential for black market activity is one of the glaring flaws in the FairTax that is glossed over by the FairTaxers and makes the scheme unworthy of support.
See, the flaw is noticed first, questions are asked, answers are unsatisfactory, scheme looks like a bad deal.
Both things are true.
OK, great. We're making progress.
Now that you've recognized the FairTax black market potential, what action will government take to plug the holes?