[chimera]

Its true that in this example all of the activity is not “underground” as you just have to buy (at retail) certain things and raw materials. But, in this case, he does do a lot of things to minimize or completely avoid those taxes (mail order, buying out of state in lower-tax places, etc.). Those places aren't zero in terms of tax burden, but there are places you can do business were local and state taxes are lower, or (for local taxes). essentially zero.

[mmichaels1970]

But, in this case, he does do a lot of things to minimize or completely avoid those taxes

I get what you're saying. I will cede that no tax plan is ever going to be perfect.

[DH]

I guess common sense is not your strong suit.

So, let’s see: I don’t want to buy a book in Texas because the sales tax is 8.25% but I can buy it in some other state at a rate of 6.7%. Do I save money? Let’s see...

The book costs 15.00. The sales tax in Texas is $1.2375. The sales tax in the other state is $1.005. That’s a savings of $.2325. So, you save 23 cents but shipping to you costs $7.00. HOW MUCH MONEY DID YOU SAVE?