Yes, that is a good distillation. There are also taxes that do not violate free market principles, like a tax on usage of land, or any other natural resource.

The incredible thing is that these free-market-respecting taxes are found by economists to have zero negative effects on economic efficiency:

https://en.wikipedia.org/wiki/Land_value_tax

They are also very easy to administer and impossible to evade - thus extremely fair - and do not require creating a surveillance state to monitor private economic interactions, as a sales or income tax do.