The free rider problem is an issue regardless of if you have a consumption or income tax. Of course, it could be largely eliminated by, as you say D9, limiting the function of the government to that which is outlined in the Constitution. Then again, I'd be making $5 million a year in the NHL if I only had some talent. I don't see either happening anytime soon.
But while we're in the dream world, I'm with Spartan: consumption tax. When in doubt, give people the option to manage their own tax burden.
...although the budget/adult population plan would certainly have some interesting effects on how the average American viewed things on Capitol Hill. Let's see those bastards pass a salary increase for themselves with that system in place.