The income tax is ridiculously easy to evade.  The latest estimates say that illegal tax evasion costs the government around $1 trillion a year.  A large part of the evasion problem is the fact that billions of dollars of income goes unreported.  Drug dealers, prostitutes, and those working for cash off the books aren’t subject to withholding and don’t file 1040 forms.  But those people buy things.

This week, the FAIRtax Guys dissect chapter 10 of the FAIRtax Book and look at how the FAIRtax finally makes taxpayers out of those who make their living in the underground or offshore economy.