I listened to an interesting talk on NPR, many governments have gone to a VAT, which lowers rates and covers every one and does not tax employment. Having said that as our code sits now, when you cut the dividend you are in fact percentage wise taxing lower income people at a much higher rate. When you bring a sales tax, same thing.  But an income tax has two glaring advantages, a. it captures our of state worker who earn her but leave nothing and it can be DEDUCTED, on your federal return. The other solutions do not do that, to many people are concerned about if everyone pays rather than what is better for the worker, income tax.