Attacking the fair Tax: Pimps

From Boortz today:

Taranto’s first attack this week on the FairTax occurred on Monday. In Monday’s “Best of the Web” Taranto implied that Mike Huckabee thinks that under the FairTax prostitutes would collect the 23 percent tax (a use tax?) and forward it to the federal government. Now what Huckabee had actually said was that under the FairTax “You end the underground economy, Illegals, prostitutes, pimps, gamblers, drug dealers–everybody pays taxes.” It doesn’t take much grey matter to figure out that Huckabee was referring to the fact that these miscreants of the underground economy would pay the FairTax along with everyone else when they used their earnings to purchase goods and services.

Neal, they are already paying the embedded tax when they buy those things. You have said, repeatedly, that the total price of legal purchases will stay the same. All that’s changing is that the embedded tax is coming through Fair Tax rather than the current system. If that is the case, then the legal purchases of illegals, prostitutes, pimps, gamblers and drug dealers pay the same tax they always were. Net gain: zero. The only way the Fair Tax would increase revenue from the shadow economy is if drug dealers started charging the Fair Tax.

I’ve never seen anyone as mathematically ignorant as the Fair Tax Movementarians.

Comments are closed.