Anyone operating legally would be stupid not to report wages to qualify for SS benefits. Most sole proprietors operate legally and pay taxes. Under the fairtax, those who supply their services to business will have no sales tax liability, so it would be wise for them to report as much income as possible and not take any deductions.
Even if someone had misunderstood the reporting requirements and given inaccurate information to said self employed individual? It would still be wise then too?
So the decision made should ignore inaccuracies and focus on reality?