If the people have more of their money to spend they will there by generating more sales tax money. The gov’t would be awash in cash... at least until the next year when they had spent all the surplus already and start crying out for more tax money.
Let’s say you have a magic wand and use it - poof! - to enact this tax plan exactly as written.
Within 15 minutes, lawmakers would be filing bills to create an exemption/loophole for their lobbyist clients. A logrolling Olympics would ensue - the result perhaps worse than what we have now. It’s too late.