This seems like a good fix for the problem at the federal level anyway. Check it out for your self. I think we should press our Rep's to pass this. It should be very simple and to the point not full of loop holes for people to wiggle out of.
The FairTaxSM Plan
Your Money, Your Decision
The current federal income tax system is clearly broken -- unfair, overly complex, and almost impossible for most Americans to understand. But there is a reasonable, nonpartisan alternative that is both fair and easy to understand. A system that allows you to keep your whole paycheck and only pay taxes on what you spend.
The FairTax is a national sales tax that treats every person equally and allows American businesses to thrive, while generating the same tax revenue as the current four-million-word-plus word tax code. Under the FairTax, every person living in the United States pays a sales tax on purchases of new goods and services, excluding necessities due to the prebate. The FairTax rate after necessities is 23% and equal to the lowest current income tax bracket (15%) combined with employee payroll taxes (7.65%), both of which will be eliminated.
Important to note: the FairTax is the only tax plan currently being proposed that includes the removal of the payroll tax.
http://www.fairtax.org/PDF/FairTax%20flat%20tax%20income%20comparison%20chart.pdf
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