Economics

That's a good point. Which is why it's probably a better idea to just have the consumption tax apply to everybody equally instead of different levels, because otherwise you would end up creating a surveillance state. Well, not like we already don't have one, but still, that's a different story.

If a poor person needs a new shirt, they will go buy a shirt and wear it until they can't anymore. Whereas if a rich person goes, they will buy 10 shirts instead of just one. So the poor person gets hit with the consumption tax and the rich person gets hit with 10 times the consumption tax.

A poor person would buy a car, say once every ten years, and pay the consumption tax one time, where a rich person goes out and buys ten really expensive cars, and not only pays the consumption tax on the car itself, but ends up paying an extreme amount more because of the branding of the car. The poor person buys a Honda Civic to get them to and from work, where the rich person buys a Bugatti.