Probably the same place they spend it today. And guess what, when criminals spend their money legally today, they pay that 22 percent embedded taxes. The only real way to capture the illegal economy is to actually collect taxes on the illegal activity. THis is not rocket science folks. Claiming you are taxing the illegal economy is a bold face lie.
Claiming you are taxing the illegal economy is a bold face lie.
You'll have to correct that error -- "a bold faced lie" -- after you read the post at 117.
No, it isn't. The illegals do not pay a "22% tax" as you incorrectly claim. They pay prices that are higher than they might otherwise be (whether 15, 20, 25% or other) but the only taxes paid are on the profits from the seller times his marginal tax rate. If that price is higher by 22%, the only amount paid as tax by the illegal in that transaction is not 22% but the merchant's profit times his marginal tax rate.
In several past posts that has been shown to be far less than the 23% FairTax rate that would be paid with the FairTax. These illegals will benefit just as will everyone else by reduced prices when income taxes are done away with, but they will still pay more in tax than they do at present when they pay almost nothing and easily evade the income tax.