Perhaps I did not make myself fully clear. In the post you reference under the income tax scenario, "...other than those embedded in the prices of products which her customers also pay when they buy those products." should have read "other than those taxes embedded in the prices of legal products she may purchase which her customers also pay when they buy those products."
I will leave it to others to judge the validity of arguments posted here.
And the NRST folks claim these embedded taxes are 20-30%, so where's the difference? They either pay the 30% sales tax when they buy legal goods, or they pay the 20-30% embedded taxes. Legal transactions result in taxes, illegal transaction don't.