Flat tax doesn't really work either. It taxes all people equally, but not all people are equal, at least economically. 10% to someone who earns $100 is a lot more in terms of buying power than 10% to someone who earns $1000. Consumption tax can work in the U.S. It did for over a hundred years before income tax was introduced. I think of it in terms of how people are disciplined. Negative reinforcement only encourages them to avoid getting caught. Positive enforcement is great in concept but how do you put that into a tax system? Not possible, so like I stated before tax based on who deserves it? People avoid taxes by finding loopholes or plain lying. How do you lie to a consumption tax? The only thing I can think of is black markets, but a black market for most things already exists and doesn't really threaten legal sales (i.e. piracy, bootlegs). If people don't want to pay the tax they can't get the goods.