So says YN for whatever that is worth. I happen to think otherwise for whatever that is worth.
For a tax to be fair.. everyone must pay it (even if they get the entire amount back in pre-bate), .. it must be visible (so we all know what our government costs, ... it must be broad ..(no way to avoid). Reagan gave us a broad, semi-flax (three bracket) tax but look what happened .. it eroded.
I do not think there is any way to erode the Fair Tax.
I also love not having the IRS in my affairs.
YN is absolutely correct. Unless you have prostitutes and drug dealers collect and remit sales tax for their goods and services, that economic activity is untaxed under both systems. It is not a matter of what anyone thinks, it is a fact. Under the current tax system, the prostitute illegally avoids the income tax she owes. Under the NRST, the prostitude illegal avoids collecting and paying sales tax. Depending on the income bracket she is in, she quite probably will actually be avoiding more tax under the NRST system. Both system only capture this money once it is brought into legal economic activity.