No problems. I live in Florida, which has a 6.5% sales tax already. This would be upped to 12%.
Keep in mind you would no longer have Income Tax. You would no longer have capitol gains tax. You would no longer have estate tax.
As of 1/10/2010, the most expensive state taxes right now are in:
Indiana, Mississippi, New Jersey, Rhode Island and Tennessee (7%)
These would be upped as well.
Alaska, Delaware, Montana, New Hampshire and Oregon have none. They would get one, at 12% like the rest.
Currently Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming have no state income tax. ALL states would rescind Income Tax, there would be no need of it.
What I am looking to avoid, aside from tax cheats and former non-paying aliens, is a situation like THIS:
Some lower income individuals pay a proportionately higher share of payroll taxes for Social Security and Medicare than do some higher income individuals in terms of the effective tax rate. All income earned up to a point, adjusted annually for inflation ($94,200 for the year 2006 and $97,500 for the year 2007) is taxed at 7.65% (consisting of the 6.2% Social Security tax and the 1.45% Medicare tax) on the employee with an additional 7.65% in tax incurred by the employer. The annual limitation amount is sometimes called the "Social Security tax wage base amount" or "Contribution and Benefit Base." Above the annual limit amount, only the 1.45% Medicare tax is imposed. In terms of the effective rate, this means that a worker earning $20,000 for 2006 pays at a 7.65% effective rate ($1,530) while a worker earning $200,000 pays at an effective rate of about 4.37% ($8,740).
It's simply this, my countrymen and -women...Everyone pays the same, and anybody that tries to skew it in one direction or another by creating different rates to favor a segment or interest group is trying to manipulate it to their benefit.