Good corrctions from both... they balance out -- evasion isn't necessary as it already exists and is not captured in GNP,The issue isn't the "underground economy," it's the increase is sales tax evasion/avoidance above current levels. We are not talking about drug deals, we are talking about business collecting the tax and not remitting it, people purchasing for private use with a business certificate, buying offshore, (the FairTaxer's favorite) buying used, etc. It is the increase in these types of activities that will grow with a extremely high NRST and will erode the FairTax base. This increase is not accounted for in the proposed rate.
For someone who's constantly harping about published studies, I assume you have something handy that shows that evasion will be higher under a sales tax than it is under an income tax?
Or are you just making your own unfounded assertion and passing it off as fact?