Abolish income tax and specific state taxes that differ from other states. Establish a nation-wide sales tax (arbitrarily, let's say 10-15% of which a percentage goes to the state). It allows citizens to have more income to spend and is fair and equitable to their spending. A person that buys a Lamborghini versus an Accord both pay the same percentage, but obviously the person that can afford the Lamborghini will end up paying a higher amount. With no income tax and a national sales tax, this captures all of the other people that have typically made money off-the-books (drug dealers, prostitutes, etc.). Citizens may reach outside the national sales tax in the age of globalization, however an import tax that is less attractive should deter a mass exodus of funds otherwise.
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