How to save the US economy - plan A

This seems to be a pretty hot topic these days but if the politicians could look beyond politics and actually use this opportunity to REALLY fix the system they could come out smelling like roses. Never mind that the people on the hill have it pretty darn good no matter what as we, the people, pay for their every necessity and luxury.

Plan A:

1. Abolish income and corporate taxes
2. Abolish the IRS
3. Create a flat Federal CF (Consumption Fee)on all consumer goods of 5%
The US consumption is about 7 trillion dollars so 5% would represent $350 billion. This is about the same number as the tax gap (not collected taxes). Of course there would be no gap if we went to CF as the 5% will be part of the price we would have to pay for products. The big winner here would be lower income who couldn't possibly spend as much on goods and services to make the 5% come close to their current tax rate.
4. Make "Naked Shorting" illegal as it once was - this mechanism has only lead to a few making fortunes by driving down stock-prices selling shares that do not exist.
5. Look for alternative revenue sources government should try to focus on making money as opposed to taking money. Where is the Department of Business?
6. The exponential effect from zero taxation will come in the form of consumption rising, businesses growing and new businesses forming.

These are changing times and for the US to remain a superpower and a great place to live and work calls for drastic, yet simplistic and understandable, measures.