[pigdog]

No - it's your reasoning that's fraudulent. She isn't taxed under the FairTax until she consumes at the retail end consumption level (and only then if she purchases new, not previously taxed items).

[Always Right]

No - it's your reasoning that's fraudulent. She isn't taxed under the FairTax until she consumes at the retail end consumption level

OK, so technically it is the John who consumes and avoids the sales tax. Either way, there was a service provided and sales tax was not collected. The underground economy remains untaxed.