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The two most effective: a 40% minimum recycled content mandate for new plastic products, followed by a cap on new plastic production, in addition to a plastic consumption tax and increased investment in waste management systems.

If a tax policy cuts a flat income tax across the board, "you would expect low-income Americans to not get as large of a tax cut as consumption tax increased," he told Salon in an interview.

In a bid to boost supply, the government has said it will remove the federal 5% consumption tax on the construction of new rental apartment buildings and is telling cities to do more to address the issue.

A more complex and structural reform, involving income tax exemptions, taxation of profits and dividends and reductions to payroll taxes, would be presented after the consumption tax reform clears the Senate, the sources said.

The government signaled on Tuesday it would propose a comprehensive income tax reform only after the Senate has passed a consumption tax reform that cleared the lower house of Congress this month.