[Principled]

You can either count taxes being paid by the individuals and businesses that submit them, or you can count them as embedded.

OK then, count taxes by who "submits" them. If you choose to leave embedded taxes in the ether, fine. Then,

Individual taxes [PIT and EE payroll] are taxes "submitted" by individuals.

Business taxes [ER payroll, business income taxes] are taxes "submitted" by business.

Criminals and illegals currently "submit" no individual taxes. But under the nrst, they will. QED.

[Always Right]

Criminals and illegals currently "submit" no individual taxes. But under the nrst, they will. QED.

So you are saying the hooker who collects $5000 pays no income tax under the income tax (true), but under the fairtax will submit the $1150 to pay the tax on her services???? I think you QED a little too quickly.

[MrB]

The counter argument is that there will be a huge black market in order to avoid the nrst.

This is simply stating that human behaviors change based on the incentives that are imposed.

So, the answer is, keep the tax below the “acceptable” level for the public, and they will have little incentive to risk breaking the law in order to avoid the tax.

I believe this article shows what the acceptable level would be - 19.5%.