I've usually heard this proposed along with a pre-bate check on goods up to the poverty line, so basic necessities. Then we are only taxed on the extra we consume.
I've usually heard any kind of pre-bate check is considered to be an unfair social safety net that would work better in the free market.
I'm not actually picking a fight, but I have literally never heard a big-R Republican, big-L Libertarian, or even little-l libertarian support basic subsistence/healthcare provided by the state to any degree.
That being said, it's not a terrible idea. But it still doesn't get at the one big problem non-libertarians and libertarians will always be embittered over, and where this discussion is eventually heading: if you have more money than someone else, do you
deserve it?