A consumption tax has the same effect as supply and demand pricing.
A consumption tax will really hurt our economy.
Finally, a clear and concise thinker on this topic.
"A consumption tax will really hurt our economy."
You should read the Prestowitz book referenced above. He explains how the US got into this mindset that massive consumption is necessary for our economy to prosper. It is very much outdated thinking and if we don't get a handle on it soon, the results will not be pretty.
We are in uncharted waters right now, with a trade deficit which is growing and is already well in excess of $600 billion/year. At the rate we are increasing, we will be at $1 trillion by around 2010. That is FAR scarier to most economists than a reduction in consumption (which is the same as an increase in savings).