
As far as the poor paying more, if there's no tax on rent, utilities food or medicine, they shouldn't be paying much. I also believe there is a refund procedure in Europe where you can turn in your tax receipts and get what you paid in taxes returned to you if you meet certain criteria.
I've also considered no tax on clothes, but I guess there would need to be some delineation between "normal" clothes and whatever-you-want-to-call non-essential items.