They try such a thing in Germany by having different rates of VAT (~sales tax) for different products. Basics (such as food) being on the lower rate, and luxury items on the higher end.
Not sure if it actually works well or is overly complex nowadays.
Australia uses GST (essentially same as VAT) but everything that is deemed essential/basic is GST free. It's a standard 10%
of course other items incur additional taxes/fees/rates ("luxury cars" also have a 33% tax on top of GST)
Fwiw I think having a standard simple consumption tax + a monthly negative tax is the way to go. So like everyone gets $150/mo from the govt to offset taxes on food or whatever, for example, but then everything could be taxed at a flat rate.
VAT always has felt overly complicated to me. At least everytime I try to look at and understand it. It feels like it's a potentially good solution but calling it VAT will cause issues.
From a consumer perspective VAT as implemented in Europe much simpler than sales tax in the US. The price advertised is actually the price you pay.
As a business it’s really not that much more complex. Add VAT to all the invoices you send out. Keep track of how much was charged to you by your suppliers. Pay the difference to the tax man.
Not sure if it actually works well or is overly complex nowadays.