Consumption Tax

Alan Greenspan spoke favorably about this idea when speaking earlier today at the President's Advisory Panel on Federal Tax Reform. I find the idea somewhat intriguing actually - worthy of exploration at least, as long as food and clothing would be exempt. A mix of Income Tax and Consumption Tax would probably be best I would think - I mean how much would this drive up the cost of goods? Would a tall Starbuck's latte increase to $10 a cup? If so, Al's right - that would encourage savings. I wouldn't pay $10 for a cup of warm milk and an espresso shot. I am not an economist, but it also seems to me that if costs for items increase too much, it would hurt the economy because people would decrease their impulse buying drastically. How much of our economy is driven by people racking up debt? What if that "bubble" burst? Where's Art Rolnick when I need him?