Those aren't his taxes, income tax boy. His taxes are paid when he purchases things.
So the drug dealer will pay 100% of his taxes under the nrst.
And are you really saying the drug dealer is going to up his price to include sales tax??!!!
I really don't see how I can possibly explain this any clearer. The drug dealer is pocketing money that belongs to the government under the sales tax. He is cheating the sales tax system the same way he would cheats the income tax system. Or are you saying that drugs are not goods under the NRST? It is my understanding that all purchases of goods by consumers is suppose to result in tax being collected and remitted. Drug dealers will not do this and is not 'fair' to those legal retailers who will. Drug dealers pocket 100% of their gross sales, legal retailers pocket 77%. How is that fair?
He may or may not. It doesn't matter. If he were on the up and up, he would have to remit the tax whether he raises his prices or not.