Fix this country!

I was bored on my way home last night, so I fixed the nation's problems. Oddly, Barack Obama wouldn't take my call...I'm assuming that it was because it was so late. I'll try back later today.
My idea is this:
We do away with all federal programs and all federal income taxes, leaving them up to the individual states (sort of like the 10th amendment guaranteed they would be, until the federal government usurped that autonomous authority).
Instead of income taxes, all taxes are levied by way of sales taxes and property taxes. Food and medicine are not taxed. Everything else is taxed: houses, cars, etc.
This levels the playing field for everyone, rich and poor alike. Those who spend the most (the rich) pay the most in taxes. Those who spend the least (the poor) pay the least. Then tax rates differ depending on product. Food/Meds, no tax; toilet paper/toothpaste, maybe 2%. Cigarettes/Booze, 20%. It's fair. It leaves very low taxes on those who only buy neccesities (assumedly, the poor), and a 'luxury' tax on those who can afford the vice. Pro-rate tax rates based on price range of things like cars and homes. lower tax rates on lower-priced items. Businesses are taxed solely on purchasing goods and a reasonable VAT. All taxes levied go directly to state. A percentage of state taxes go to fund the federal government. All property taxes stay in the county and township. Each county and township is responsible for its own social programs, school districts, etc. This way, those who work the hardest and choose to keep their money, can move to districts where property taxes are low because there are minimal welfare programs. Or those with children can move to districts where education is a top tax priority. Each state would be in charge of defining acceptable limits. The Federal government tests constitutionality, regulates the inter-state commerce, and provides foreign protection.
I actually thought that I was on to a brilliant idea until I realize that this idea is not new...this is constitutional. This is the way this great country started and functioned for 100 years...before politicians decided that they could do a better job spending our hard-earned money than we could....