Exactly as it is today. In neither case does the drug dealer actually submit any tax. The only difference is under the fairtax he receives a little piece of paper showing what taxes that were paid on his purchase. On the income tax they are hidden and embedded into the price.
So, are you finally admitting that 23% of current product prices is an embedded tax, which you have denied for years?
When did I deny it. My biggest issue was the fairtax does not pass it to the consumer. As long as employees and business keep their portion of the taxes, costs will not go down significantly and prices will go up.