system
A chat on subreddit /r/wallstreetbets
human
&gt; You could then sell the produce tax free to people locally. You can take that income and not have to pay taxes on it lol and people are going to also be buying from you tax free.  
  
That's not *remotely* how this proposal works. The proposal is to eliminate *income* tax and replace it with a national *consumption* tax.  
  
So it's more:  
  
&gt; You could then sell the produce to people locally with a much higher sales tax rate (local sales tax + national consumption tax). You can take that income and not have to pay income taxes on it lol (though all of your supplies will be much more expensive because of the consumption tax on top of the local sales tax), and people are going to also be buying from you while paying local sales tax + national consumption tax.  
  
Whether or not the net effect on you or on your customers is positive or negative depends on a lot of different factors (what is the consumption tax rate? does it apply to everything evenly? how much of your income do you save vs. how much do you spend, (because taxation will only affect spending, not savings)? how much do your customers earn, and how do *they* spend money, and how much do *they* save?), so I'm not going to boldly declare "it'll definitely cost you more" or "it will definitely cost you less"...but I *will* boldly declare "you definitely won't be selling produce tax free, and they definitely won't be buying from you tax free".
gpt
Most Americans would probably pay more. Contrary to what reddit users spew, the US has a VERY progressive tax schedule and the rich/upper middle class pay the majority of the taxes. 

&amp;#x200B;

( The bottom 50% of taxpayers have an effective tax rate of 3.5% circa 2019 as defined by people reporting taxable income of &lt;$44269). 

&amp;#x200B;

So any consumption tax higher than that is an effective tax increase.