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To: SolidSupplySide
The illegal folks (which includes drug users) would not consume the same as legal folks.

Of course they won't consume exactly the same as legal folks! Good grief.

However, it can be easily argued that those illegal kind of folks will consume more taxables than us legal folks. They like new cars, fancy clothes, expensive jewelry, etc... all of which they'll pay tax on.

Guess what? The cumulative consumption of drugs on which sales taxes are not paid will be precisely equal the cumulative income of the drug dealer on which income taxes are not paid.

Illegals currently ONLY pay the hidden tax premium and do NOT pay their own income and payroll taxes. Hence they do not pay the full measure us legal folks pay. Us legal folks pay the hidden tax premium AND income and payroll taxes.

Under the nrst, ALL tax is paid on consumption. Since you consume regardless of the origin of your income, all individuals will pay their share.

Under the income tax, illegal folks only pay part of their taxes.
Under the nrst, illegal folks will pay all of their part of taxes.

Hence the nrst captures the full measure of tax from illegal type folks (excepting the obviously unreported illegal transactions, which are not taxed now either).

Since under the income tax, not all of illegal folks' taxes are paid and under the nrst all of the illegal folks' taxes will be paid, then it is easily concluded that the nrst does a better job at capturing taxes from illegal type folks.

Why is that so hard to understand?

59 posted on 04/17/2004 7:15:52 AM PDT by Principled
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To: Principled
<Since you consume regardless of the origin of your income, all individuals will pay their share.

You, like all "Fair Tax" proponents I have seen, are not being intellectually honest here. Our drug user is *not* paying his fair share because he is not paying sales tax on his drug purchases.

The cumulative effect of all drug users who are not paying the sales tax *PRECISELY EQUALS* the effect of the drug dealer who does not pay income tax.

under the nrst all of the illegal folks' taxes will be paid

Are you actually arguing that our drug user, one of the illegal folks, would pay the sales tax?

66 posted on 04/17/2004 9:51:22 AM PDT by SolidSupplySide
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