Untaxed illicit income taxed licit consumption I re added the sentance Illicit income will be taxed under the FairTax plan when illicit income is spent on consumption FairTax assesses all taxes at the point of sale where consumption happens The illicit income which is presumably unreported and untaxed has to become consumption at some point when it does the consumption tax occurs Obviously the big caveat is the effectiveness of the consumption tax but that s the subject of the entire article so I think disclaiming such here would be a little cumbersome