Great - another believer ...
Only one thing wrong - you're almost totally incorrect about the breadth of things on the black market a(and how long they'll operate from outside of a jail cell). And don't kid yourself about the states ... when their tax revenues are hugely involved and with more money to pursue evildoers (and a smaller base of crooks to choose from while having even more tools to work with) the state will be quite effective. And most states presenly have even less revenue at stake.]
In short, you've mostly got it bassackwards.
So, you have the other poster claiming: "the fact is enforcement mechanisms would be at the individual state level and there is no mechanism for them to abuse individual taxpayers under the fairtax much less destroy them."
You, on the other hand, claim that the states will be "quite effective" policing every tax-free transaction that every American can potentially carry out with every other American with cash, a wink and a nod.
You will have as much luck shutting down the black market as the Prohibition-era U.S. Government had keeping America alcohol-free.
The only way to put the black market in "a jail cell" would be to create a police state that would make the Soviet Union seem like a Libertarian Party convention.