Assume I am purchasing an illegal item (drugs, prostitution, etc.)
1. Under a FairTax I don't pay tax on my income.
2. I don't think that the dealer/prostitute will be collecting ANY sales tax.
3. When the dealer/prostitute spends my money, then it will be taxed. But remember, I wasn't taxed in step 1, so wouldn't it be the same as now, just taxed at a later step?
The Mob
The Mob might be a great beneficiary of a FairTax due to vastly increased smuggling opportunites.
You are trying too hard...
Hurt - illegals, Drug Dealers, the cash economy
Assume I am purchasing an illegal item (drugs, prostitution, etc.)
Key word = Illegal. The fair Tax will collect more Tax from Illegal activity than any Income / Flat Tax
1. Under a FairTax I don't pay tax on my income.
Correct
2. I don't think that the dealer/prostitute will be collecting ANY sales tax.
In reference to the Prostitute, I am pretty sure that if you are purchasing the “item” you can be sure that it is “used” or “second hand” and therefore non-taxable
The Service provided by said Prostitute is currently untaxed, if you wish to change this elect Hillary.
Drug Dealers (the illegal kind) don’t pay or collect any Tax now, with the Fair Tax their HUMMER will be Taxed, their Jewelry and their BOOM boxes will be.
3. When the dealer/prostitute spends my money, then it will be taxed. But remember, I wasn't taxed in step 1, so wouldn't it be the same as now, just taxed at a later step?
See #2 (and what are you doing spending money on Prostitutes and Drug Dealers anyway?)
The Mob
The Mob might be a great beneficiary of a FairTax due to vastly increased smuggling opportunity's.
The Mob WON”T be able to spend MUCHO dollars on Politicians that feel the need to use the Tax Code for Social Engineering, remember the “Mob” makes it’s Money from things that are Illegal, getting the Politicians out of the Nanny Cop Business will be the hardest part of implementing the Fair Tax, Power is Money, (Politicians are nothing but a legalized Mafia, which is why they are so easy to buy), putting the power back in the hands of the consumer will put the power back in the hands of the people (putting weapons back in the hands of the public will return power to the people as well)
Will it become harder to sell a home? Will there be more renters?
By same as now I assume you mean revenue neutral to the gov? If so, then it sounds like a good deal to me. People who work and earn money get to keep it until they decide to spend it on something. If there is illegal activity, those who break the law get taxed when they spend. Problem?
Face it. With the prostitute, anyway, you are buying a used product.
Which raises a question. When someone hires me as a consultant, they hire me to use my brain. It has been used before, hired out for that purpose. Does that make my consulting fees exempt?