Quote:I don't understand how it eliminates the black market economy. If they just buy more black market goods, which arise because over high taxation, how to taxes get collected on those? Or was that not really your point. 

 

I should've said it eliminates tax free income from the black market. Eventually that money is spent at legitimate establishments generating the tax revenue (listen to me advocating tax revenue) If someone is making $1000 a week cash under the table that tax revenue is never collected in a production tax, in a consumption tax that revenue is collected when the $1000 is spent.

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