[imtringued]

This tax proposal makes no sense. It's very easy to dodge sales taxes and VAT taxes by doing under the table deals.

If anything, you want to replace all consumption taxes with a flat income tax (always 40% for example) combined with a flat deduction (first $40k are not taxed).

If you absolutely must replace income taxes, then replace them with land value taxes because it is impossible to avoid them as the owner (who may not be in the country) or as a person living in the country (because all land is taxed).