[Always Right]

What does change is that the drug dealer begins paying his full share of taxes under the nrst. Under the income tax, he only pays a portion of his share- the part embedded in prices.

But your analysis assumes ALL taxes are embedded in the final costs of goods and services, so the drug dealer is in fact paying the same under either system. You guys talk in circles and deny the basic truth.

[Principled]

...so the drug dealer is in fact paying the same under either system.

So now you agree that prices will remain stable under the nrst - that's a start.

Here's the difference you don't get: under the income tax, other people must pay a portion of the drug dealer's taxes because he only pays a portion of his taxes under the income tax... he pays no income tax, he pays no FICA... so we have to cover it for him.

But under the nrst, the drug dealer pays his FULL share of tax.

Under the income tax, he pays only a portion of his taxes.
Under the nrst, he pays all his taxes.

Can you not see that we all no longer have to pay for the drug dealer's taxes???

[pigdog]

No one (except the SQL crowd) ever said ALL taxes were embedded in prices.

All those in the underground economy fare much better under the IT system since all they have to do is disguise their income rather than their consumption.

Houses, cars, etc. are a lot tougher to hide than income = and a lot more obvious.