Which is a legitimate point. The Fairtax does not capture the black market in anyway shape or form. The Fairtax just taxes legal purchases, which is exactly the same situation we have today. The net gain is zero if you really understand the argument, which I will not be holding my breath on.
I would think that anyone could understand that a drug dealer or thief currently gets income as ill-gotten gains and is never taxed. the criminal currently makes purchases and does not pay tax.
How could you not see that after the FairTax he may still get his gains through nefarious ways but would then pay federal tax when he or his family makes a purchase?
That's not exactly true. When a non-taxpaying drug dealer is caught, his assets are seized, taxing authorities estimate income and taxes are assessed.
Al Capone was convicted for income tax evasion, not his criminal activities.
In fact, a drug dealer may pay taxes on his ill gotten gains and be assured that the secret of the source of his income is safe with the IRS, though I doubt many test that particular privacy law.
How could you not see that after the FairTax he may still get his gains through nefarious ways but would then pay federal tax when he or his family makes a purchase?
He only pays the tax on what he buys new, and from a seller who collects the tax.
And now, when his customer works, he pays the income tax. With the FairTax, his customer will have 100% of his pay check, tax free, to spend on drugs and the dealer will not have to worry about the IRS.
But how can you not see when he sells his $10K worth of drugs he fails to submit the $2300 worth of fairtax. The criminal is avoiding $2300 worth of taxes. It works out the same under either tax scheme.