The underground economy will shrink from "summary" of The Fair Tax Book by Neal Boortz,John Linder
In a world where the government no longer taxes income, the underground economy will have no reason to thrive. People who previously hid their income from the government out of fear of heavy taxation will now have no need to do so. This means that the money that was once hidden away will now flow freely into the legal economy, boosting productivity and overall economic growth. With the FairTax in place, there will be no need for individuals to engage in illegal activities to avoid paying taxes. This will lead to a decrease in criminal behavior and a safer overall society. The underground economy, which relies on secrecy and dishonesty, will gradually lose its footing as more and more people choose to participate in the legal economy. Furthermore, the FairTax will provide a level playing field for all businesses. Currently, businesses that operate in the underground economy have an unfair advantage over those that operate legally and pay taxes. By eliminating the income tax and replacing it with a consumption tax, all businesses will be subject to the same rules and regulations. This will encourage more businesses to come out of the shadows and operate legally, leading to a more competitive market.- The FairTax offers a solution to many of the problems associated with the underground economy. By simplifying the tax system and eliminating the need for individuals and businesses to hide their income, the FairTax will promote honesty, transparency, and economic growth. It is a step towards a more efficient and fair tax system that benefits everyone.
