Too Long, Didn't Read.
I think a consumption tax (i.e. a national sales tax and no income tax) would be a great way to go, since richer people buy more stuff, thus pay more taxes.
I would leave some things the way they are (i.e. groceries are not taxed), but most other things, such as ipods or most "non essential things" should be taxed.
There are a couple issues I see:
1) States will stil need to get money somehow and I don't know if people would want to get a national sales tax + a state sales tax.
2) Where does the tax start? Raw Materials? If you were a car maker, would you get taxed on the steel that you buy to make the cars? And the rubber for the tires? and the glass for the windows? And then would the consumer get taxed AGAIN when they buy the car? There's a large potential for stuff getting double/triple/multi taxed before it reaches the consumer level.
