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.
Gotcha. So today, Joe Drug dealer is profiting about $50,000 a month from selling coke and paying zero taxes. And Joe Drug dealer, having money and enjoying the good life just bought himself a big $100,000 Benz, then put on $20,000 aftermarket spinners. Wears $200 sneakers. Enjoys buying expensive jewelery for himself and his "lady friends". And he has paid ZERO in taxes.
However, if the FairTax is in place, he would have paid taxes on the Benz, spinners, sneakers, jewelry, etc...
And he still has to a place to live, food to eat, clothes to wear, will purchase entertainment items, gifts, luxuries, etc... But as you say, the FairTax won't get the black market money.
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?
Absolutely, on one hand the FTers say the black market will newly be taxed as profits pay the FT consumption tax. On the other hand, they say regular people pay embedded tax now on retail sales, so hence no price change after FT. More duplicitous argument and smoke from this crowd.