Consumption taxes can be regressive. Ideas like the Fair Tax (http://en.wikipedia.org/wiki/FairTax) generally include provisions to reduce the disproportionate effects on people making less money (and proportionally spending more to survive).
Taxing consumption also encourages people to save and invest. In my opinion, this is a much better base for a society than encouraging spending and not saving. Most western countries tax income less and consumption more than the US.
Disguise? There are no exemptions. A significant focus of the idea is to remove the politics, special cases, and loopholes around the tax system.
The 10th largest economy in the world functions on property and sales taxes alone. We call it Texas.
Taxing consumption also encourages people to save and invest. In my opinion, this is a much better base for a society than encouraging spending and not saving. Most western countries tax income less and consumption more than the US.
Disguise? There are no exemptions. A significant focus of the idea is to remove the politics, special cases, and loopholes around the tax system.
The 10th largest economy in the world functions on property and sales taxes alone. We call it Texas.