Yet when we now buy things, our dollar bills are both subject to the same new federal sales tax. You should be happy about that. I will not be, because I have been taxed on income when I earned my dollar bills and taxed again when I spent them, whereas you have been taxed only when you spent your dollar bills. I'm not going to like your tax plan. That's too bad for you, because you would be at no disadvantage under the new plan while holding back everyone else for the future.
Think also about the advantage you would get, in addition to what the young person with no savings would have: no capital gains taxes on your long-term (or short-term, for that matter) investments, including sale of a home. Any deferred income plan would be completely free from income taxes.
You're changing the facts. In my example I merely own a pile of dollar bills. On those facts I get screwed. Perhaps in the interests of the greater good of society, but personally screwed nevertheless. That's the real transition problem you need to face.