What happens when everybody, especially the corporations that have to answer to "stockholders", decide to cut back to bare essentials?  You will have less spending, which will not only hurt the economy, but also cause the federal government to run deficits again.  I think you would have an instant depression!  I don't think a national sales tax is a perfect solution either... we just need to simplify the graduated income tax that we have now.

Best,
Robert A. Franco
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