Second, low income families spend all their money making ends meet, whereas high income families have a lot more latitude in adjusting their expenditure. Offsetting this with deductions will be a bureaucratic nightmare.
Second, you can implement a progressive consumption tax scheme. You can mirror with existing income tax system - first $10,000 spent each year is tax free, next $20,000 at 15% and so on. It could be hard to implement at this moment but with the advance of technology it would certainly become possible. An alternative would be to charge higher taxes for luxury goods like yachts and fast cars and lower taxes for basic goods like food and transportation.
The collected taxes can given back to the populace as social welfare. Most people would want to only limit welfare to low income individuals and families. I do not share the same opinion - there are many convoluted rules it is hard for people to see what the government is really incentivising you to do - in my country if you save more than $2,500 you lose your welfare payments until your bank account balance goes back below $2,500. Which I think is dumb.
e.g. When cash is replaced by only bank accounts, then every transaction becomes traceable.
As I said before though, you can as an alternative lower sales tax on basic goods and raise them on luxury ones.
Your receipt might look like:
1 coke $1
Consumption tax $0.15
-------------------------
total $1.15