So the Fair Tax is an income tax???? Your logic defies logic. The Hooker will not submit her $30 tax on the $130 she was paid her for her services. She is cheating the Fair Tax system. It is not fair that the Hooker gets to pocket the full $130 for her services, while I only get to pocket $100. There is no ands, ifs, buts, or ors about it, the illegal transactions still cheat the system.
Are you really saying that hookers are going to collect the tax?
Not at all - but maybe you should be a hooker if you think that.
She'll pay the sales tax when she buys at retail unles you think that everyone with unreported/evaded income has retail sources that will look the other way and NOT collect and forward the sales tax - which would require most retailers to chance their entire business just to help out that one sort of customer. That's ridiculous.
I certainly did not say the FairTax was an income tax, but that the income presently evading taxes will be taxed when spent - to the tune of 23% rather that a minor amount as at present.