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7. Underground Economy still not taxed. The NRST advocates falsely claim that the underground economy now will be taxed. Nothing could be further then the truth. Sure, when the money re-enters the legal economy the money is taxed, but that is true today. But will the drug dealers and prostitutes remit sales tax for their goods and services under the NRST? Absolutely not, this portion of the economy is still invisible to the tax collector and therefore not taxed. According to Bruce Bartlett, 'thus whatever revenue is gained when drug dealers spend their ill-gotten gains will be lost because no tax was collected on their drug sales.' (Bruce R. Bartlett, senior fellow, National Center for Policy, Analysis, November 5, 1997).

The above is total and complete idiocy. The assumption is that because it "misses" the first taxation, something has been lost, and that it happens today because hookers, drug dealers do it. Yeah, sure they don't pay INCOME tax now and only pay SALES tax when they spend, but what happens when the NRST changes the rate? I'll tell you, it got missed the first go'round because it's illegal, but we got it on the second go'round because, my friend, it ain't at the same rate. And, if you think quoting Mr. Bruce Barlett substantiates your claim, well, he's an idiot too if he can't figure that out!

I didn't waste time reading any further, this one was enough to know the bread's not baked....

The above is total and complete idiocy. The assumption is that because it "misses" the first taxation, something has been lost, and that it happens today because hookers, drug dealers do it. Yeah, sure they don't pay INCOME tax now and only pay SALES tax when they spend, but what happens when the NRST changes the rate? I'll tell you, it got missed the first go'round because it's illegal, but we got it on the second go'round because, my friend, it ain't at the same rate.

I am not sure what is 'idiocy' about it, but I was not talking about sales tax. When the drug dealer buys a $50,000 car under the income tax, it creates taxable income for a lot of people. The sales guy makes $3000 and has to pay income tax. The car dealership makes $8000 and has to pay tax on that. The guys that shipped the car and the guys that assembled the car and the car manufacturer made income too, and must pay tax. A legal sale under the income tax does not capture any federal sales tax, but captures income tax embedded in the car.