Nothing is gained. Whether it be a sales tax written on a receipt or embedded taxes that are hidden in the item, both capture the tax of prostitutes and drug dealers once they make a legal transaction. For BOTH systems, legal transactions capture tax, illegal transactions do not. It makes no difference in terms of collecting taxes from prostitutes and drug dealers. The same amount of illegal activity remains un-taxed, unless you think the prostitutes will submit their 30% tax for their services.
How much in federal taxes are they paying on those items today?
Yes, it does. Currently, I have to pay both the personal income tax when I make the money PLUS the hidden/imbedded taxes when I spend it. The people who are making their money illegally are NOT paying a personal income tax.
Now tell me, who currently pays more overall taxes? An doctor making $500,000/year or a drug dealer making $500,000 per year? If you say neither, then you are lying to yourself and me, too because you know that the doctor will pay probably $100,000 in income taxes while the drug dealer pays nothing.
With a fair tax, how much you pay will depend on how much you SPEND, not how much you earn, legally or illegally.
It has nothing to do with curbing, or even addressing, illegal behavior.
If you want to argue that angle, start another thread. All you're doing is clouding the issue. This adds nothing to the debate, brings nothing to the table.
When you're comparing apples and oranges, it doesn't make for your strongest argument.
I notice that most all of the people on this board who do things like this are continuely making arguments against the proposed NRST, seldom, if ever, arguing for the current system.
Given your approach to this subject, it is entirely reasonable for one to assume that that is your only option - the current system.
If tactics like this are deemed to be a necessary adjunct to your arguments, be prepared to be laughed off the planet. There's simply no other way to put it.
CA....