Under neither system does the prostitute "pay" anything. She doesn't pay income taxes on her activities today, she won't pay sales taxes on them tomorrow. That is the nature of the underground economy -- it can't be captured because the producers are dishonest.
When she goes out and buys something in the legitimate economy today, the producers will remit income taxes. If there is a sales tax, the producers will remit that, too. That is the nature of the legitimate economy. If the producers are honest, they will pay the tax.
Note that I am not saying that the total collected changes.
I agree that there isn't really a big difference between income taxes and sales taxes.
Wrong.
Under our income tax, she pays embedded taxes in prices when she buys legal stuff, representing a portion of her tax burden.
Under an nrst, she will pay her entire tax burden when she buys legal stuff.
She doesn't pay income taxes on her [illegal] activities today, she won't pay sales taxes on them[ illegal activities] tomorrow.
This was never in question.
She does pay a portion of her taxes today via legal purchases containing hidden, embedded tax. But she doesn't pay any income or payroll tax.
Under an nrst, she will pay all of her taxes when she buys stuff legally.
I agree that there isn't really a big difference between income taxes and sales taxes.
With whom are you agreeing? I said there are important differences. Income taxes and sales taxes have similarities - it is the difference in how the sales tax collects from the illegal economy that I was pointing out.