I would accept your argument if the United States had the size and population of Connecticut.  There are millions of people, however, including leading economists and more than a few members of Congress who would disagree with you.

FairTax.org has conducted extensive policy research and commissioned a variety of issue papers on the economic impact of the FairTax on various sectors of industry and individual taxpayers. The FairTax has often been referred to as the most thoroughly researched and viable alternative to the current tax system.

Regards,
Scott