A consumption tax policy like you are suggesting is regressive, meaning people with lower incomes are more impacted by the change in tax laws. They benefit less proportionately when their income is untaxed but things they buy is taxed more. It benefits the wealthy and investment class more.
However congress has recently introduced a "Fair Tax" bill, abolishing income tax, corporate tax, and estate tax. Replacing it with additional consumption taxes that will be managed by the states.
https://www.newsweek.com/republican-plan-abolish-federal-inc...
Not having income tax is not new. For a period of time before 1913 Americans didn't pay any income tax. The government was much smaller then and was funded mostly through tarrifs.
There is an argument to be made that American's don't need to pay any tax and that the government could be run through money creation. El Salvador's president Bukele mentioned this in a speech last year. https://x.com/wallstwolverine/status/1860393853355806942
That approach has its own problems.
However congress has recently introduced a "Fair Tax" bill, abolishing income tax, corporate tax, and estate tax. Replacing it with additional consumption taxes that will be managed by the states. https://www.newsweek.com/republican-plan-abolish-federal-inc...
Not having income tax is not new. For a period of time before 1913 Americans didn't pay any income tax. The government was much smaller then and was funded mostly through tarrifs.
There is an argument to be made that American's don't need to pay any tax and that the government could be run through money creation. El Salvador's president Bukele mentioned this in a speech last year. https://x.com/wallstwolverine/status/1860393853355806942 That approach has its own problems.