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That's another reason US tax system baffles me. Why does it make it so that workers have to pay taxes this way. In my country, salary have very small tax and it's cut before the money comes into your account at all. So whatever money you egt is yours, there is no feeling of paying taxes at all. While employers will pay taxes and the taxes on profit is a lot more than tax on salary.
I personally think there's not much point of tax on the salary, they'll be spending it on other things, and whoever makes profit on that will pay the taxes on their profit. e.g. you get salary no tax, you buy clothes, vehicle, prepared food, etc. and those companies get your money, and they pay tax on profit, and then have expenses which is money that goes to other companies/people who again pay tax on profit, and their expenses goes somewhere else. All in the money is only taxed once, when there is profit. Unlike in every transaction.
I have been thinking about this as well. I am sure there is some probelm with a spending side tax rather than income. Probably subversion of the tax. Undertable deals, street vendors, etc. With income they make the company track and get their cut before you are able to subvert anything.
Also our economy is very credit based with the use of credit cards. If taxes were all collected at point of sale there might be probelms with defaulting and who gets the money if people don't pay.
I am not an economist. I am sure someone has thought of it already.