And these embedded taxes are being paid by the person purchasing the good or service-- because if they weren't buying it, then the good wouldn't be made and the service wouldn't be performed, and no taxes would be paid.
The FairTax wants to make this point when talking about retired people who would face huge price increases under the FairTax, but they want to say that it doesn't exist when talkign about the illegal economy.
"And these embedded taxes are being paid by the person purchasing the good or service-- because if they weren't buying it, then the good wouldn't be made and the service wouldn't be performed, and no taxes would be paid. "
And, as has been shown in most instances (even this remarkably unique one), the actual income tax involved due to embedded tax is FAR less than would be the equivalent FairTax.
You're missing the point. There may be imbedded taxes on everything that the drug dealer buys but the drug dealer doesn't pay ANY taxes on his earned income.
Under the present system, people that don't declare or have earned income, do not pay federal taxes, so the rest of us have to pay his share and that ain't Fair.
But, everybody buys stuff, so, under the FairTax, everybody pays for the federal government. That's Fair.
Why do you people resist the abolishment of income taxes? Are you a tax accountant?