[azcap]

Plus a National Sales Tax would tax the underground economy.

How?

The theory goes that with an NST your local marijuana entrepreneur will now pay his fair share when he buys 6 boxes of Twinkies and Big Gulp, and your local hooker will pay her fair share when she gets that new pair of fishnet stockings.

Reality is that illegal economies will be taxed more than before but large parts of them will still go untapped. But that's the nature of "illegal" economies. There will also be a huge increase in sales tax fraud (cash will truly be king!) All said it's miles better than whah we have now.

 

[norraad]

..better than whah ew hvea now.

sais the cow looking at grass through the fence.

[LA Conservative]

Sorry, does not sound rational to me. I believe it would spur an underground economy to evade the tax. I work in an area west of Downtown LA, almost all illegals.

Trust me, they hadve already perfected an underground economy. Only the legitimate businesses suffer.

[meyer]

Reality is that illegal economies will be taxed more than before but large parts of them will still go untapped. But that's the nature of "illegal" economies. There will also be a huge increase in sales tax fraud (cash will truly be king!) All said it's miles better than whah we have now.

I contend that whenever taxes exceed what people think is fair, they will find ways to avoid paying, even if it involves bartering with their neighbor. The definition of "excessive" though varies from person to person.