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To: Always Right
Under the income tax, dug dealers only pay a portion of their taxes (the part embedded in prices), us legal folks are left to pay their remainder. That's a lot of extra that the tax legal folks have to pay.

But under the nrst, drug dealers will pay their full share - so us legal folks don't have to pay for them anymore.

662 posted on 06/12/2005 4:42:39 AM PDT by Principled
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To: Principled
But under the nrst, drug dealers will pay their full share - so us legal folks don't have to pay for them anymore.

The tax base for both systems is the entire legal economy. A $1000 purchase under the sales tax will yeild a similar amount of tax as a $1000 purchase under the income tax. If your system is tax neutral, you really can't argue with that. The only way to capture the illegal economy is to somehow make it part of the legal economy, which a sales tax does not do. I understand this point completely. It is not me who needs to open his eyes.

668 posted on 06/12/2005 5:29:21 AM PDT by Always Right
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