At a far lower rate.
The existing “black market” is sizable — I have seen estimates ranging up to one trillion dollars, and ALL of that money is not taxed.
True. Sounds like we need a simpler tax code so that the IRS can focus upon enforcement.
Do some research on the subject “FairTax and the underground economy”...
I've been reading about it for twenty years. It is theoretically appealing (I once advocated it), but once I understood the nature of the collection system, no. I don't want the government tracking my ammo purchases. You can pretend they won't, but they will. I don't want the government forbidding me from buying ammo if they believe or rule that I somehow cheated on the tax by some barter transaction. What I buy or sell is none of their business.
You have no idea where the enforcement of an NRST will go.
Due to the fact that under the FairTax, all consumers are treated equally (same tax rate on purchases) one can make a credible argument that the underground economy will shrink under the FairTax.
Your first argument above refutes the last. Try at least to be consistent.
I don’t believe that there will be a sizable underground economy under the FairTax, which is what I said in my first paragraph.
As to tracking individual purchases, that simply will not happen! I cannot imagine how you or anyone else can conjure up a scenario where an individual consumer would even come into contact with a tax collector, either state or federal.
The FairTax is set up to be an extension of the state sales taxes, and completely isolates the consumer FRom the tax collector. That is one of the features of the FairTax.
Federal tax collectors will only work with the states to ensure that each state collects and remits the proper amount of taxes.
In fact, there is another feature: businesses and states will be paid to collect the FairTax so as to cover their cost of collection. FairTax is not an unfunded mandate like the income tax is.