Remove personal income tax and put a fee on spending instead

In 2007 there were about 120M US Consumers (I guess a lot of people do not consume?). Anyhow, the avareage consumption was $49K/year giving a grand total of consumption around $5,880,000,000,000 or 5.8T.

The new Obama budget is $3.5T which is projected to result in a loss of $1.75T leaving projected Revenue (taxes, fees etc) of $1.75T.

The stimulus plans are rapidly approaching $2T and probably will end north of $4T when all is said and done.

1. The current stimulus will cost more than all the annual revenue at least the next two years

2. Removal of ALL personal income taxes would result in a "loss" of $1.T (based on 2006 data).

3. A 10% Federal fee (let's get rid of the word tax please) on consumption would result in Federal revenues of $580b (a little over 50% of total personal income taxes collected).

How about we severely scale back the stimulus or remove it all together, get rid of personal income tax once and for all ("the country of the free" and all that) and then add a fee on consumption?

The immediate jolt would be in the next paycheck. Even better and fair is the fact that people are FREE to purchase the goods and services they choose and contribute to the Federal government as a percentage of their own purchasing decisions.

Let's not have the discussion over who can afford what, put that decision into the people through their purchasing. The rich can purchase more but then they will contribute more. Consumption is a good thing as it creates jobs.

This plan has no earmarks and no special interest groups involved, it is simple, fair and can be implemented virtually overnight.