For part 2 click here. The sales tax plan has several benefits. Since only consumption is taxed, saving would be rewarded. The annual chore of filing tax returns would be scrapped. And retailers could keep a small part of the tax collection to cover compliance costs. But critics have noted several problems. A key problem is with the tax rate. Several years ago, the nonpartisan Joint Com. on Taxation figured the 29.9% rate would not be sufficient to generate as much revenue as the current tax system. Exemptions and transition rules would end up driving the rate even higher. Taxing home sales would generate howls of protest. Lawmakers would be pressured to exempt food and medicine. And businesses that put assets in service before repeal of the income tax would press for relief for the unused depreciation on those assets. So the odds of a high-rate sales tax fully replacing the income tax are slim. Supporters will need to get the ear if House Ways and Means Chm. Dave Camp (R-MI). He is currently working on developing a tax overhaul proposal, and he envisions that the income tax will be revamped by broadening the tax base and lowering rates.