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To: Always Right
It is pure fairy tax fantasy that everyone is going to make out better because of the fairy tax because illegal aliens and criminals are gonna pick up the slack.

With sales tax rates at only 5-6% the amount of off the book sales from mom and pop stores is very large. Up the rates to 20-30 and the level will rise tremendously. The IRS agent of old will become the sales tax agent going undercover to catch the local pizza maker and his brother liquor store owner.

36 posted on 02/11/2006 9:49:03 AM PST by Raycpa
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To: Raycpa

With sales tax rates at only 5-6% the amount of off the book sales from mom and pop stores is very large. With sales tax rates at only 5-6% the amount of off the book sales from mom and pop stores is very large. Up the rates to 20-30 and the level will rise tremendously

Not to mention the 40% marginal rates of business income/payroll/selfemployment taxes they evade on top of the 5-6% remittence of sales taxes collected from their customers.

But we wouldn't want reality of the current tax system to intetrfere with the fantasy that tax evasion occures only because of state sales taxes at 6% rates.

In short every incentive and more exists under the current federal income tax system. The overall economic incentive to evade taxes actually declines with the FairTax in place.

47 posted on 02/11/2006 9:56:41 AM PST by ancient_geezer (Don't reform it, Replace it.)
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To: Raycpa

Nonsense. You need to read the bill AND the material on the FairTax website.


54 posted on 02/11/2006 10:04:08 AM PST by pigdog
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