If the rate is the same, the cry is "they have more disposable income!"

If the rate is progressive, it is designed to be unequal.

what this system does it still put the desire to pay taxes in the hands of those who consume.

The poor, for their part see a negligible change, and if frugal can benefit from the change.

The rich would not feel their taxes are being taken involuntarily. (they don't HAVE to spend)

The REAL advantage is that the underground movement of money is tapped when it hits the retail environment.  Prices would also likely drop without destructive deflation, as the built in costs of managing state income taxes is gone, along with MBT etc.

Of course some bureaucracy will remain.  The old adage about death and taxes is very true, but we have opportunities from time to time in managing the most fair method of collecting.  

Not gone does not mean no better.

Thinking about the changes that need to be done often runs for the first part of the term of elected officials only.  then it wanes till next time.

Reminds me of those jokers who occupy Lansing, and say "this isn't the right time for Right to work"