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.
Your status quo keeps a intact a massive bureaucracy namely the IRS. A consumption tax is certainly a better way to go than having to report to the government all sources of your income.