Get rid of the income tax and go with a 20% ish consumption tax with some modest exempt amount of spending sent via quarterly checks to each tax payer.
This exempt amount needs to be modest to avoid the issues we have not with so few paying income taxes.
Wrong answer. You are describing a “refundable tax credit,” which as we see from the EITC is a recipe for fraud. A flat tax on income (not on consumption) and no rebate is a better way to go. Even setting aside fraud, your suggestion still requires a massive bureaucracy to administer the rebate scheme and to combat fraud.