And you think, somehow, that under the present system these very same evasions are NOT going on now?? In fact, there is less motivation to evade the FairTax at a 23% rate than the present income tax which has a much higher marginal rate (and withholding taxes as well that make it even higher) - say 40% rather than 23%.
So is it your position that evading for a lesser reward is somehow more likely than at present? And keep in mind that with the FairTax, there are fewer audit points meaning that it is easier to go after such sorts of things if it is a problem.
It is far more likely that evasion will DECLINE under the FairTax ... Gale, Bartlett, & Brookings Institute nothwithstanding. Keep in mind the vested interests of these folks - and a number of the SQL (Status Quo Loving) posters on this thread, also, when you consider their outrageous claims.
The other thing these people never talk about, or even realize, is that there are HUGE economic and social distortions caused by the current tax system, some intentional by the social engineers, most simply due to the law of unintended consequences.
The current system stifles initiative very effectively.
If we ever actually knew the true economic and social price tag of those distortions, I have no doubt we would be staggered by it.