From the tax panel report For the portion of income from which taxes are not withheld and there is no third-party reporting, income tax evasion rates are estimated to be around 50 percent.
The FairTax makes ALL tax collection points self reporting.
But there is 3rd party reporting under the nrst. Did you forget that?
Retailers will have a registration that allows them to purchase tax free and allows them to be paid for remitting the tax.
They aren't simply asking retailers to please be honest! They'll be checking.
The FairTax makes ALL tax collection points self reporting.
Actually since the taxpayer in a retail sales tax system is the purchaser of goods and services a retail sales tax system assures that the one paying the tax is not the one held liable for accurate reporting of the taxes due. For every transaction taxed, there are more than two persons aware of the tax collectors existence, the purchaser, the seller, the suppliers to the business selling and the government issuing business certification providing tax exemption for purchasing in production or aquisiton of products for ultimate retail sale.
Lots of potential witnesses, and lots of oppertunity for government to monitor 90% fewer tax collection points than exist today, less than 20% of which carry more than 80% of the total retail dollar volume. A max risk for little gain for the tax collecting point.
OTOH, under the income tax system the payer of the tax and the reporter thereof is one and the same person. Making an income tax/payroll system totally dependant upon self reporting, begging to be violated and cheated.