I can see most of what you're saying, however, how do you "untax" a group of people that are currently not taxed, and in fact benefit by receiving payment from the government in the form of the EIC?
The EITC is a horrible thing - it is in place to buy votes IMO. But those people are indeed paying invisible tax at the counter. The EITC should be gone. The nrst does eliminate it.
Those people pay no payroll taxes and often (usually) pay no income tax and are even at times are net tax recipients. They do, however, pay taxes in the prices of goods they buy whether they're necessities of life or not.
Taxes on necessity level spending should be gone IMO. The nrst does eliminate it.
Your point about the EITC is well taken. Nevertheless, the nrst prevents necessity level spending from being taxed.
You can view this in two ways - that it's bad to untax necessities or that it's good.
IMO it's bad b/c some people will not be net payers - this is mitigated by the fact that folks will have to cough up the cash at the register...so they will at least feel the cost of the beast. As it is now, they have no idea that they're paying tax and so clamour for more services.
OTOH it's good because it makes the nrst politically viable.If it were regressive it would be far more difficult to pass.
It's a bitter pill... increase the rate by 1.9% to make it possible to attain the vast improvement of eliminating the income taxes, payroll taxes, and withholding.
my 2 cents.