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.
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.Let's not forget that the customer is a criminal, too. So there are two criminals in a drug transaction. In the current system, one criminal pays, the other doesn't - and under the FairTax, one criminal pays, the other doesn't.