I tend to favor a consumption based tax. I believe that everyone should be responsible for some of the tax burden, and it seems logical that it should be weighted on consumption. But I also agree with NYMM, the proposals out there that claim implementing one would be a simple task are not realistic in the slightest.
Our tax system is seriously broken. From the laws, to the idiots working in the IRS who couldn't find their ass if you drew them a map. (OK, I'm bitter because they have messed up my return for the second time in 3 years).
First off, it's too complex. The average person should be able to sit down in a hour or so, fill out a short form, and be done. It should not be the stressful drawn out ordeal where you're trying this and that to find your best deal. It should be black and white.
Second we have allowed it to turn into a welfare system, both real and perceived. On one hand you get people looking at tax refunds like a bonus paid to them from the government, when it's just their money they let the government hold on to for a while, interest free. On the other hand, you have people actually getting more back then they paid in. That is beyond ridiculous.
Add in that it doesn't encourage short term savings. It does not encourage paying down debt. You might say, so what, why should a tax system do those things. But if it is easier for a person do do these things, they become more beneficial to the overall economy. If by cutting your consumption for a year you would save money in taxes, you would free up money you would be paying in interest, and gain interest on money you saved that would find its way back into the actual economy instead of feeding banks and this culture of credit we've built for ourselves. You can't tell me that richer, more stable (US)Americans will not lead to a stronger economy.
Sadly, there's no pill to take, no easy answer. Anyone who claims that there is, is either fooling themselves, or doing their best to fool you. We've entitled imbeciles to build an overwhelmingly complex system that cannot be easily unraveled, and they've tasked incompetents to run it. (Ok, again, just bitter... but our law makers certainly are imbeciles.)
The people to make any significant positive changes will have to be honest, and admit it's a daunting task, that will be painful for government and people. And government is going to have to be willing to sacrifice, as the people have been doing all along.
Something needs to be done. Our middle class is suffering, and needs relief. Too many people out there are taking none of the burden while often receiving the most benefit. What the answer is I certainly don't know, and haven't seen anyone else who has it either.