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Notes -
Possibly. I think you might be able to track net cash outflows, rather than purchases directly, to cover most of it, but that admittedly only works for people that use banks and would have trouble with people who get paid and pay in primarily cash. But the existing income tax system has those problems too.
You could also tax different products at different rates, depending on the income range that purchases them. Used clothes, lower rate; Teslas, higher rate; organic produce, higher rate; frozen veggies, lower rate. In theory you could kind of approximate the same effect. The biggest issue would be all the jockeying different industries would go for to be classified into the lower rate (why, of course this Hermes bag is purchased mostly by lower income people!)
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I guess a corresponding benefit could be dramatically reducing the overhead of a small business. But only in a fantasy world where all state taxes followed suit.
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