In place of the old taxes, the reform calls for a new consumption-based tax system, largely via expanding and slightly increasing the state sales tax.

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Ron Paul supports the elimination of the income tax altogether, and the implementation of a national consumption tax or even no new tax at all (apparently retaining the existing payroll tax, which is a sort of income tax, and having a much smaller federal government).

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Crunching the numbers for new revenues from the doubled consumption tax still shows a gapping JPY 16.6 trillion (USD 207 billion) budget deficit after 2015.

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Hav-A-Tampa officials said a new federal tax dramatically increased the price of their cigars and reduced consumption.

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The Democrats will argue that there is room for revision: among 23 rich countries which also tax consumption, only four, Denmark, Japan, New Zealand and Norway, do it on food at the full rate.

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In the case of North Carolina, a new study by the Civitas Institute concludes that a tax reform that shifts more of the burden to consumption from income would increase average annual personal income growth by 0.38% to 0.66%.

WSJ: Review & Outlook: The State Tax Reformers