Trixie isn't paying income tax right now and
she isn't, right now, collecting sales tax
from her customers either. Right now, none
of Trixie's funds go to the government.
That would change with the Fair Tax. Trixie
would pay sales tax on her purchases. It
will be the same with drug dealers and every
other person in the shadow economy that
doesn't currently collect or declare income tax.
I plan to buy Neal's book to find out more.
But this not true, she is paying all these taxes now when she buys legal goods, the Fair Taxers say that the taxes are hidden in the costs of the goods. So, she is already paying the taxes on her consumption of goods, they just have not been liberated and called taxes yet.
Legal transactions are taxed today so nothing changes.