It would "tax the underground economy" as effectively as Prohibition rid America of alcohol and it would eliminate tax crime just as effectively as Prohibition eliminated untaxed moonshine.
In order to cheat and leave no paper trail under the income tax system, you have to be a partner in crime with your employer or be self employed. The risk of getting caught is so high that most employers in legitimate businesses won't go there even if they are self employed.
In order to cheat and leave no paper trail under the Fair Tax system, you merely need to be a partner in crime with one of the tens of thousands of black market sellers that will be selling stolen goods out of their car trunks or selling untaxed services for cash.
For the Average Joe, a 23% savings will be a huge incentive to tax cheat by purchasing goods and services on the black market. For the average crook, the huge demand for untaxed goods will be a equally huge incentive to engage in the theft of such goods.
You grossly overstate the amount of avoidance under a sales tax. The vast majority of the sales tax is collected at the cash register by the big retailers.
However, the economic distortions and avoidance of the income tax are monumentally huge.
Boy azre you misinformed. I suggest you read the bill and eturn with some rational comments.
The BS about "tens of thousands of black market sellers" just won't hack it with anyone who stops to realize there are many, many, many millions of people in the illeghal economy right now that pay no income tax. and black markets that might crop up won't last long since they must register with the state (and thereby be auditable) to legally sell - and if not thaay can be pursued with civil and criminal penalties very easily - more so that under the income tax sinc proof of illegality is much easier.