wouldn't I just buy everything from the black market and save 22%?
How would you save 22%? The black market has to aquire their supplys to sell to you, they either pay the tax on that or take the risk of theft/embezzling/fraud etc. to give you a 22% lower price. I doubt that very much.
Remeber even someone operating on the black market has to have enough sales to make a living. The more customers ,the greater their visibility and risk of being caught through either informers or by direct observation by tax enforcement agents of the states.
You don't think government and legitimate businesses that are under audit and certification allowing them to purchase tax free are just going to sit by and let black markets take the retail market over do you?
Where is my logic wrong?
In thinking states don't enforce retail sales tax laws or fail to go after businesses and those who violate them, and in thinking you the customer are likely to see any benefit from buying black market to avoid a 22% tax. Guaranteed 22% is not enough to sustain a black market operation in face of the risks and costs associated with such businesses.
With all respect, I like your points but I just dont see it the way you do...
I think demand creates black markets. And I think nearly everyone will want to save the 22% (even if some are afriad to) and hence create the demand.
I think that government will be powerless to stop it as they are with nearly every black market in our nations history.
I think that people will want to go the the black market to buy their goods forcing people who would other want to be law abiding to either close their shops or become "criminals" themselves.
I think that criminals will then run the nearly the entire retail portion of our economy, their tenticals will reach into the supply part of the economy by criminal tactics.
Some think that this one Fair Tax Law will be easier to enforce, I think the one Fair Tax Law Enforcement Department will be easier to bribe. And they will be bribed by the criminals running the retail portion of our economy, wich are there because they are providing good and services that people demand.
In summary...
Saving 22% is a HUGE temptation...
People will want to do that...
If the people want it, then the goverment will be powerless to stop it.
I think our tax law is cumbersome and has lots of problems. Im not convinced that Fair Tax is the answer and I remain skeptical... Hoping someone will show me where I am wrong...