godf on 03 December 2007
| Eomund said: Also by implementing the FairTax you would end the underground economy of prostitutes, drug-dealers, and other various nefarious dealings of money under-the-radar. All those people would then pay tax anytime they bought something. (Again up to the poverty level they wouldn't because of the Prebate). |
Also, the fair tax will act as a rather large subsidy for all of this illegal activities. Yes, those making money from them are more likely to pay tax, but for consumers, there will be a sudden drop in real prices for all these goods.
Anyone wanting to avoid tax, will just be able to shop abroad. A bit of a problem for those close to the border, or those with enough money to have homes abroad.
