Nope - that's nonsense. The drug buyer pays the income tax whether he buys drugs or salted peanuts for the same price. His IT on the money earned is the same. It is the illegal transaction that is being discussed and what taxes are paid on the money generated from that illegal trade. And it IS no "wash" - the FairTax does a much better job of obtaining tax revenue from the illegal activities.
With the drug transaction, the seller eventually uses the funds to purchase at retail and when he does the illustration given applies. It describes what happen with the money the drug dealer spends under the IT and the FairTax. With the FairTax he pays more in taxes - far more - than under the IT.
Once again, Nightie, you're off-the-wall as well as wrong. You also clearly overlook that the FairTax will generate many billions more from the 20 million or so illegal aliens as well as reducing the compliance costs which are merely a non-productive deadweight on the economy (and therefore on taxpayers).
Nope - that's nonsense.As usual, logic and reason is lost on a FairTax supporter. That's why y'all are Fanboys.