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Conflict to compromise to synthesis: Tax Policy

In the coming days I want to make some proposals about bridging the gap between the two ideologies of progressivism and libertarianism. Of course we already have much in common and i don't want to go over those agreements here. Instead what I would like to focus on are the issues where we don't seem to find common ground. Mostly this will be about economic policy but from time to time we might explore some cultural, defense and foreign policy issues.
Today, I want to offer up an idea on tax policy and solicit your responses. I do this not to be argumentative but to develop ideas which will strengthen an emerging coalition which Ron Paul has already begun.
Ls think we Ps love taxes, as if we derive some kind of masochistic pleasure from filing our taxes. The truth is we long for simpification as much as you do. And believe it or not we would rather our taxes be lower. Of course, we do differ in other respects. Ls tend to prefer flat consumption taxes while Ps tend to prefer progressive income taxes. What if Ps could let go of their desire to tax income and Ls their desire not to tax bigger somes of money at higher rates. The result is a progressive consumption tax, a tax advocated by liberal economist, Robert Frank and approved by conservative economists: http://www.economist.com/blogs/democracyinamerica/2010/11/in...



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There are some advantages

to consumption taxes.
Namely, the IRS gets eliminated, along with the terrorist police-state thugs they employ to oppress us. That's a good benefit.

However, there are concerns that it can be an economy-killer, because it penalizes purchasing.
Two-edged sword.

Ultimately however, if spending isn't brought under control, it doesn't matter what the tax vehicle is, it won't be enough.
There is no antidote to debt, except to stop digging deeper.

If I might suggest, I think the main thing to focus on is the common interest of stopping foreign interventions and wars.
There's all agreement there, and no friction.

Focus on current agreements

but what actually happens after RP is elected? That is what will be on voters' minds. I do not think it is economy killer especially if it is phased in. Let's say you let people know that there will be a 10% surcharge on spending over a million dollars starting in 2013. What happens in 2012? A rush by millionaires to make big purchases ahead of the increase of 2013. Consumption taxes will encourage savings and lowering of private debt. It would also increase investments, putting more people to work (that's good supply side economics, isn't it?) and if you exempt, rebate, or credit enough at the bottom end, consumer spending can be sustained. Moreover, reducing consumption tax rates in an economic down turn will have a much more stimulative effect than reducing income taxes. This all depends of course on putting significant progressivity in the consumption tax rates. The so-called "fair tax" won't do it. In any case, it's an idea that both Ls and Ps can embrace and if RP puts this plank in his platform, he will have a lot more progressives coming his way.