Businesses already have to report earnings and pay tax to the IRS.Actually, it would mean more federal interference... I can imagine here in NY: 23% federal sales tax + 8% state sales tax + 3.5% county retail tax = like 33 cents on the dollar.
This not only simplifies the work businesses have to do, but eliminates untold thousands of positions from the IRS that would normally deal with personal income statements. How exactly do you think this would increase federal interference?