>>That way, everyone living in America would pay taxes at the exact same rate, and they would gain the ability to control the amount of taxes they pay by controlling their consumption.<<
With all due respect your logic here seems a bit convoluted. Applied against our current tax system; if I were to choose to control the amount of federal taxes I paid I would stop working. Applied against your proposal; if I were to choose to control the amount of federal taxes I paid I would stop spending. In both cases a choice to stop paying taxes would be detrimental to individual wants/needs and to the economy as a whole. I simply don’t see the logic in this. Why wouldn’t I want to earn more or why wouldn’t I want a new SUV? It seems counter intuitive to the reality of a society built on satisfying wants/needs and the accumulation of wealth.
Good response, Tex.
I'm in a bit of a rush right now, and can't devote the time I need to adequately answer.
Think of it this way -- you get to keep all the money you earn. You would only pay taxes when you spend. So, the money you save or invest would accrue to you totally tax FRee. While it was saved or invested, that money would be used to grow the economy, i.e., unless you buried it or kept it in a sock, your savings/investments would be re-invested by savings institutions/businesses.
You, in other words, would be rewarded for working harder and saving and investing more instead of penalized as you are now when you work, save and invest.
I'd invite you to check out the FairTax research at
http://www.fairtax.org. Read some of those articles, and later this evening I'll get back to you.