That's exactly the proposal. I think it would be a great system. It would do a better job of spreading taxes around fairly. I think it would make a big difference in how we handle customs, though. Most countries will allow you to get a refund on sales tax when you leave the country if you aren't a resident. (The U.S. is one of the countries that doesn't allow this, probably in part because our sales tax is at the state and local level rather than federal.) That would mean you'd be able to buy stuff tax free in another country and bring it here. Currently you don't have to pay import taxes on stuff you bring from other countries as long as it's for your own use and it's under a certain value limit. You would probably start to see people bringing more stuff back with them when they travel internationally if the sales tax here got too high.