I have heard pros and cons to a federal sales tax. It looks like a fair tax where as the poor would pay less because they buy less and the rich would pay more because they buy more. I have also heard the tax would have to be around 20% which would be far too high. As for the IRS, they would still be collecting income tax from businesses and would manage the new federal sales tax so I don't think they would be cut back any. But, I would not shed a tear if the IRS was clipped.