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The items you highlight in red - and in fact most of the content of your post deal with tax evasion (in the form of unreported or underreported income) which is a different matter than black market activities which relates to the unlawful selling of things outside of the tax system.

Your post shows nothing about black market sales nor has any definitive paper ever been presented that delineates the "black market".

Your claim that taxpayers would buy things by bribing a merchant with, say, a 5% bribe holds little credence since the seller would under the law still be liable for the full 23% tax. Why should he risk his business for a measly 5% to help you (or anyone else for that matter) when the 23% is not paid for by the merchant but by the buyer - and the merchant has agreed in writing to collect the tax and is paid to do so. That would be theft of government funds.

Claiming there will be large scale black market activity is all you've done. No one has ever shown this to be a real consideration as most folks are fairly honest and, after all, their effective FairTax rate will be lower than the income tax rates they now pay. Due to that it's far more likely that any black market or any other sort of tax evasion is being done now since it is more profitable to the "doer".

Your claim that taxpayers would buy things by bribing a merchant with, say, a 5% bribe holds little credence since the seller would under the law still be liable for the full 23% tax. Why should he risk his business for a measly 5% to help you (or anyone else for that matter) when the 23% is not paid for by the merchant but by the buyer - and the merchant has agreed in writing to collect the tax and is paid to do so. That would be theft of government funds.

That presupposes the sale is made by a retailer/merchant with more to lose than to gain.

Claiming there will be large scale black market activity is all you've done. No one has ever shown this to be a real consideration as most folks are fairly honest...

The fact that so many people immediately think increased black market activity when they hear the FairTax scheme rates indicates that it is a REAL CONSIDERATION. The fact that you recognize the potential is irrelevant.

...and, after all, their effective FairTax rate will be lower than the income tax rates they now pay. Due to that it's far more likely that any black market or any other sort of tax evasion is being done now since it is more profitable to the "doer".

What is the "doer"?

There you go again - the tax rate is so low, people will pay. Somewhere on this thread some FairTaxer has claimed that having to fork over the FairTax with every purchase will incite "the people" to rise up and force government into responsible reduced spending. Those two positions contradict eachother. If the rates are so low that people will pay rather than seek a tax evading alternative, they are also so low that there will be little interest in reigning in government spending.

To accomplish the FairTax manipulation, the tax has to be sufficiently high to motivate people to action. What FairTaxers can't control is the action people will take.

The items you highlight in red - and in fact most of the content of your post deal with tax evasion (in the form of unreported or underreported income) which is a different matter than black market activities which relates to the unlawful selling of things outside of the tax system.

The full series of articles deals mostly with Eastern Europe where the selling of untaxed goods is rampant on the black market.

Your claim that taxpayers would buy things by bribing a merchant with, say, a 5% bribe holds little credence since the seller would under the law still be liable for the full 23% tax. Why should he risk his business for a measly 5% to help you (or anyone else for that matter) when the 23% is not paid for by the merchant but by the buyer - and the merchant has agreed in writing to collect the tax and is paid to do so. That would be theft of government funds.

So, a 5% cut for an out of the back of a car trunk sale is too little a cut for you, the seller?

Fair enough.

Let's split the profits of the tax crime 50/50. I, the buyer will pay 111.5% of the sale plus tax price and get an 11.5% profit and the seller will pocket that 11.5% of the price tax free.

And, who is to catch us?

According to the Fair Tax advocates, after the Income Tax dies, there will no longer be an IRS and there will not a be a Tax Police to replace it.

No Tax Police = No enforcement = No risk = Easy $$$$ on the black market.

Don't fool yourself.

With every sale having a total profit potential of 23% to be split however the buyer and seller agree to split it, the "under the table" economy tempatation will be high and the Tax Police will be on it like pitbulls on a pork chop.