With this system even drug dealers who claim no income pay taxes, and there are no loop holes for the top 2% to use, this makes everyone who buys anything pay taxes. Put a XX% federal tax on everything and eliminate all other taxes, then give the states the power to set their own tax rate to place in addition to the federal tax. This would be completely fair and everyone pays the same rate for federal Tax, this also lets income be used to create jobs and drive innovation.
Every American, and every person buying goods in America will pay taxes, foreign visitors, illegal aliens, undocumented workers, anyone who buys something in America will be contributing to the budget.