The higher prices caused by embedded taxes are not taxes paid by the purchaser, ----but a higher price than he might have otherwise paid--- due to the seller's having had his costs raised by embedded taxes. The seller would already have borne this higher price in his incoming cost of goods. The portion of this higher price due to embedded taxes in the $100 example might be, say, $10 or $20. The profit on this higher amount using a 25% seller's margin would be something like (using the higher $20 amount) $20 x 0.25 = $5. The tax on this $5 would be something like $5 x 0.15 = $0.75 in tax "contribution" from the underground economy due to embedded taxes (or perhaps $3.75 optimistically in the buyer's favor in viewing the whole transaction) instead of $100 x 0.23 = $23.00 under the FairTax.So presently when the underground economy makes a purchase they, as if by magic, don't pay any hidden/embedded taxes which aren't really taxes just higher prices as a result of embedded taxes, which aren't really taxes just higher prices as a result of embedded taxes, which aren't really taxes just higher prices as a result of embedded taxes.In view of that, Looey, it's fair to say that the present system basically does not tax the underground economy due to embedded taxes since the FairTax obtains about 30 times more revenue on the same transaction than the embedded tax contribution under the income tax.
There's no "magic" about it, Looey, but I didn't expect you to understand the description ... and you last paragraaph comments indicate that you certainly do not.
Now, back to your #619 - was there some point to your post???