Criminals are avoiding remitting 23% of their gross under the fairtax. I don't see that as any different. Are criminals avoiding 23% of their gross under the income tax? I seriously doubt it. I think it would be pretty close to a wash.
It changes because now criminals don't pay PIT or payroll like they will under the nrst.
That's one of the reasons today's legal participants in the income tax system will see a boost in purchasing power - they no longer have to pay as much to carry the criminals and illegals.
You could think of one’s tax burden as three parts;
-embedded taxes
-PIT
-Payroll
Criminals/illegals only pay one of these - embedded tax. Legals, however, pay all three parts.
Under the nrst, one’s tax burden is only one part;
-tax on consumption.
Criminals/illegals will pay this tax, just like legals.
....
Under the nrst, criminals/illegals will pay a greater portion of the total collected [and legals will pay less].