Both you and YN are absolutely WRONG! Under the the NRST the proceeds of those sales will eventually be spent, just as they are today, the only difference being that under the NRST that spending is taxed were it isn't today under the income tax.Boy, you don't get it, do you? Let me try to explain.
Person makes $100. Gets taxed 25%, or $25, and spends $75 on drugs. $25 is collected in taxes.
Person makes $100 and pays no income tax and spends all $100 (prices go up) on drugs. The drug dealer take that $100 and buys some new bling-bling and pays 25% inclusive NRST, or $25 - the same amount as was collect under the current system.
And this assumes some of that $100 doesn't go to Columbia to buy more "stock."
As usual, it is YOU who doesn't "get it"! Let me see if I can explain.
Current system: John Doe and nine of his buddies visit Miss Mable down the street and pay her for her "professional services". Most of those guys probablably earned their incomes by legal means and have been taxed on it but Miss Mable and her pimp PAY NOT ONE RED CENT other than those embedded in the prices of products which her customers also pay when they buy those products.
NRST: John Doe and nine of his buddies visit Miss Mable down the street and pay her for her "professional services". ALL of them pay with money not previously taxed and Miss Mable and her pimp pay when they make purchases of LEGAL goods and services, which now do not have embedded upstream taxes and compliance cost as a component of their price, JUST LIKE JOHN DOE AND HIS NINE BUDDIES DO!!!
GET IT NOW?