The overlooked issue with a flat tax is not everyone pays tax like those working under the table or drug dealers for example yet they get all the services and benefits we taxpayers fund. With Fair Tax or a consumption tax those people can’t avoid paying taxes if they buy anything. While I wish no one had to pay taxes how would we finance the services likes roads, national defense for instance. Boortz wrote a wonderful book explaining how Fair Tax could work.
>> not everyone pays tax like those working under the table or drug dealers for example yet they get all the services and benefits we taxpayers fund.
Yes, there is an “underground economy” now, wherein folks earn money that is not taxed. And it’s not fair to the rest of us that do.
However, if a national sales tax is implemented, there will certainly be an “underground economy” build around selling goods without a hefty (20+ per cent) tax attached to them.
My point: the so-called “fair tax” will not stop tax cheating, it will only change the mechanism of cheating.