I don't think he's thought it through. It would kill more than 50% of businesses.

Besides, the state typically does take a cut of every transaction, in VAT or sales tax. This holds true even in the UK, and it's 20% which is close to the corporate tax rate on profits at 25%.

> Besides, the state typically does take a cut of every transaction, in VAT or sales tax.

What are sales taxes? Because VAT is only applied to the final transaction. VAT fraud is probably the most common tax fraud because of its availability for anyone without morality who own a business (or is close to a business owner), as it's easy to write off VAT.

It takes a cut of every consumer transaction. Businesses don't pay VAT on their materials for the products they sell.

"BREAKING: Visa raises interchange fees by 1%, every business closes."

You get how crazy that sounds, right?

1% when there's 100b of goods and you only make 101b would still kill the business with that argument, transactional fees can be written off so you don't have to pay tax on them.