You cannot be serious. I bought a set of tires from a legitimate looking business near my home, Mario's Tires. Mario gave me a receipt that indicates the sales tax. I have no clue if he remits the tax to the State of Texas. I assume he does and have no reason to report Mario to the state. Even if I were angry at Mario, what evidence would I have?
Under a sales tax of 30%, Mario has greater incentive to not remit taxes. Of course my receipt will still indicate I paid the tax. What shall I tell the taxing authority? Geezer, keep in mind that I am principled enough to want to avoid making a false accusation.
I have no clue if he remits the tax to the State of Texas.
You can be sure the tax authority for the State of Texas knows or can find out on audit.
I assume he does and have no reason to report Mario to the state.
Depends, did he give you a cut rate by not charging you appropriate sales tax to get your business? Does he do so for his other customers? Does any other customer have reason to believe Mario is cheating and have a grudge against him because Mario did do the same for him? The point being Mario is at risk from multiple customers any one of which may trip him up if it becomes known to any of them that he is embezzeling tax moneys.
Even if I were angry at Mario, what evidence would I have?
Your receipt detailing the tax paid, and transaction that must be match in his own record on state audit.
Under a sales tax of 30%, Mario has greater incentive to not remit taxes.
He has more incentive to evade the (66% tax exclusive)marginal rates on payroll/income taxes.