I won't argue that some won't do that, but I would say that most cheating is done because of the sense that they are being treated unfairly and are trying to 'get even.' The passage of the FairTax will be an overt statement that we are trying to be fair because there aren't multiple rates and no group is singled out for special treatment.
I am opposed to any attempt to tax income even as a measure to prevent cheating, though it would probably work. We'd then need a bureacracy to account and collect that tax and that low 'compliance' rate would be subject to inflation creep upwards.
"I am opposed to any attempt to tax income even as a measure to prevent cheating, though it would probably work."
Let's make a deal. That's what Congress does, right ? Here's the deal:
Eliminate SS, Medicare, and Disability as programs funded by taxes. Instead, people will have to purchase the amount of coverage (benefit) they want, just as though they were buying insurance. That eliminates cheating and the income tax, retains the programs as voluntary purchases/investments, and gets us a low FairTax rate to cover all the Genreal Fund obligations.
Don't I wish ;=)