And the CORRESPONDING assumption in the fairtax would be that the business remit the sales tax, correct? So under the fairtax, the hooker does not pay anything when she purchases something because it is the BUSINESS who pays the tax. That is where the bait and switch takes place in your analysis. If you truly stick to consistent assumptions you get the right answer. BTW, that is the most straight forward set of assumptions, in the embedded tax model it works out that the John is cheating the system in both cases and not the hooker.
Under the nrst, the consumer pays the tax included in price and the business remits.
NOw who's changing?
Just admit it AR, you're looking foolish.
INcome tax; criminals pay zero. NRST: criminals pay when they consume.