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To: Principled
Actually, the black market would decrease in size.

Here is the (short version) logic: Currently, the progressive income tax progressively punishes those who earn -- the more money a person earns, the more is stolen, percentage wise from their check.

This differential treatment causes many people to seek some relief, and the black market or "underground economy" is one method of relief many people choose. [In fact, the underground economy is the fastest growing segment of our economy, and has been for several years now. But the government will not admit it.]

In contrast, under the NRST, everybody pays the same rate of taxes -- and everybody is, therefore, treated with equality (in respect of taxes). There is no progressive disincentive to work, earn, save and invest.

I believe that most Americans are honest people, and that those participating in the underground economy (except drug dealers and the like) would prefer not to. Economic necessity (they like to be able to feed, house and clothe their families, etc.) has forced them into their lawlessness.

Once those who skirt the law come to understand that they are (taxwise) treated with equality, and that they can feed, house and clothe their families, etc., without engaging in the underground economy, they will cease doing so, because living on the "opther side of the law" is not comfortable for most Americans.

And, for all practical purposes, what is now called the "underground economy" will wither up and die.

Of course, for you to accept my argument, you have to agree with me that most Americans are honest people and would rather obey than disobey the law. I have no hard evidence to support my position -- just my dealings with people over the past 60 odd years.
584 posted on 11/06/2002 8:52:40 PM PST by Taxman
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To: Taxman; Principled
Actually, the black market would decrease in size.

I hope you are right, but I don't see evidence for it myself.

600 posted on 11/06/2002 9:18:38 PM PST by palmer
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