koffieboon said:
It is not about a few people running minor businesses, it is about people travelling outside the US to do their shopping abroad, where sales tax are a lot lower. We're talking about people smuggling those products into the US to sell for a big profit because sales tax are so high in the US. If the price of products in the US is a lot higher than outside of the US there is a opportunity to make money for people. And history taught us people will take advantage of it. And actually, if it is really big money were not talking about individuals making a little extra money but organised crime making billions of dollars. |
Organised crime would make money? O wait they do that now... just kidding then. Criminals will do anything to make money or power, which ever is more important to them. There are already underground markets and economies that are estimated at over $1 trillion. As far as I know, smuggling is a crime, not a tax evasion problem. They would be prosecuted as such. When people legally import goods or claim them at customs they would pay the FairTax if I understand it correctly.
The shopping abroad argument is fairly weak too. It is expensive to shop abroad for expensive goods. If people want to buy something cheap what is stopping them from crossing the border now and buying it in Mexico or Canada.
