The article discusses the idea of replacing the current federal income tax with a consumption tax. It explains different types of consumption taxes and the arguments for and against this change. The study shows that switching to a consumption tax could be regressive due to the current progressive income tax system. State and local governments are worried about how a federal consumption tax would affect their revenue and spending. There would also be a one-time cost to implement the new tax. Transition rules are important to prevent double taxation of savings and to control the shift from old savings to new ones. These rules could change a consumption tax into a wage tax.