Geoffrey MillerVerified account

Consumption doesn’t really scale well with income though. Your tax would have to be pretty nonlinear.

That’s not how it works, dude. New taxes are always in addition to the old ones.

My two-cents: VAT hurts low income more than high income families, unless basic goods and services like groceries, electricity, transport are free from VAT. In NZ, we have a 15% VAT on everything and it's pretty crushing for lower incomes.

We have 20% VAT in the UK. Frankly I hate it. A land value Tax has always appealed to me though, much more progressive.

This seems cool: https://en.wikipedia.org/wiki/X_tax 

I've witnessed its implementation in Dubai firsthand. Initially, we were all complaining and worried about price increases. Most businesses just absorbed the VAT as a cost, keeping their prices the same for competition. It's great way for govts to get revenue from tax dodgers.

I don't. A big benefit of progressive income tax is its narrowing effect on income and wealth inequality when applied properly (pre-1980 rates). Spending doesn't really increase with income past a certain point; you'd lose a good tool to promote societal cohesiveness.