As earlier noted, simple solutions tend to become simplistic when they fail to consider the unintended (but predictable) results of those actions. As Greger points out, sales taxes are, by their very nature, aggressively regressive and terribly inefficient on the scale proposed. As a result they would need to be grossly high to make up for the revenue lost from more efficient methods.
Collection of those taxes, moreover, would require a much more intrusive and, again, inefficient administrative structure to collect it. I agree that a per-transaction tax for commodity/stock trades would ameliorate those conditions, somewhat, but that moderation would have the expected effect of slowing economic activity - offsetting somewhat whatever gains might have been achieved. I like the concept, but the consequences have to be considered.
Going back to the four principles I previously put forth: would such a scheme raise sufficient revenue, be efficient, equitable and effective?
