Not well researched on this, but off the top of my head it doesn't seem like the best policy (disproportionally impacts low income people.) The state still needs to collect money for maibtaining roads, libraries, schools, etc. This is likely coming from stuff like sales tax, etc. People on lower incomes are more likely to spend a higher portion of their income on goods (food, gas, etc.) Since the price of those is semi-fixed relative to income, while those who are of higher income are more likely to save the money. This leads to low income people effectively being taxed more of their wage than high income people. Might be totally wrong though, would really need to look at the policies on this style of taxation and if it makes any sense. What probably matters most is where the governments revenue is actually coming from.