But under the current system all the taxes are embedded into the cost of goods anyways, so it still gets taxed once the prostitute spends her money. Under both systems, legal transactions result in taxes eventually getting paid, and illegal transactions do not result in taxes getting paid until that money is spent on something legal. It is basically a wash and I have never understood why NRST folks don't get it. It is not really a debatable point.
"But under the current system all the taxes are embedded into the cost of goods anyways, so it still gets taxed once the prostitute spends her money."
Any tax, all taxes need enforcement. Why are you fixated on this poor prostitute? Let the poor woman ply her trade in peace.
Do you really think the federal government's need to track the individual income of each and ever worker is anywhere near as simple as collecting a sales tax?
NO not ALL taxes are embedded in the cost of goods, only the taxes of EVERY business venture which has touched the production of a given item throughout it's production cycle and ALL the costs associated with complying with them are embedded.