Max,

Pericles is correct. The few times any idiotic government has introduced a transaction tax, the transactions stopped almost immediately. Any transactions simply happened overseas and the net revenue was almost zero, but with huge consequences for the local financial institutions.

Anyone with even a smidgen of economics would recognize why no sane government has even contemplated it and only Pauline Hanson has been dumb enough to think it is a good idea.

A little harsh Democritus, but can you tell me which countries have replaced all other forms of Taxation with an all-encompassing transfer tax? That is what my original question was about, and as far as I'm aware there have been no examples of that.
If I was an economist I wouldn't be asking, how else am I to understand such things, so, how about explaining you're final statement to one simple person, in simple terms?

The only country that tried a transaction tax in recent history was Zimbabwe.

The resultant chaos saw even that intransigent gov repealing the legislation within a week. In the interim the banks and stock exchange closed. The resultant tax income to the gov was nearly zero.

Other than it generates almost no revenue, the fact that nearly all revenue would be paid by the man in the street who can't dodge the tax would mean that the more you earn, the less you pay.

In short, no gov has replaced all other taxes with a transaction tax, for obvious reasons.

Demo', again, you make unsubstantiated claims and offer no explanations.
Zimbabwe is no example of anything rational, the entire country is so corrupted and is almost a failed state it demonstrates nothing, sorry.
And again you talk of dodging the tax, impossible under the regime I proposed. And your "obvious reasons" are apparently inexplicable, since you don't.
Thanks anyway.

Democritus

"Anyone with even a smidgen of economics would recognize why no sane government has even contemplated it and only Pauline Hanson has been dumb enough to think it is a good idea."

There's a huge gulf between someone like Pauline Hanson and a respected economist like Dean Baker, who's demonstrated clearly a thorough grasp of our current financial mess and the measures required to extricate ourselves from it.

The fact you haven't even referred to his analysis indicates you're probably speaking off the top of your head, and using Zimbabwe as an example only confirms it. You need to do your research before mouthing off so strongly.

Contrary to your scathing dismissal, I think you'll find this is one of a raft of measures that Obama and other leaders will be considering. It's not just about revenue raising. It's about bringing some fairness and stability back into a broken system.

The Sheriff of Nottingham was Robin Hoods enemy ,who is Kevin Rudds?Flat tax is the most sensible taxation system ever devised.
It is fairer more transparent and would cost much less to enforce and monitor.
Economists,and tax accountants would become redundant .
The current system of punishing the working poor, who have no way to escape the PAYE system has to end.
The taxation bonuses for the rich are endless,agricultural investments,Family Trusts,Income splitting,negative gearing,Franked dividends,overseas investments plus 100 other ways to lessen the rich
tax burden.
At the other end of the scale, the Rudd government is currently spending $32 million a DAY on defence and billions more on overseas aid and needless billions on public housing that does not help "Honest Joe" taxpayer with a wife and kids and a mortgage.
I suggest we scrap personal tax , as we used not to be taxed in this manner, and most developing countries have no personal tax.
It was unfair on the British who were taxed sometimes at the highest tax rate of 19/6p in the Pound Sterling.
This allowed Hong Kong residents,and Arabs to purchase Hotels, Shops,etc in central London,as they enjoyed a Tax free income,
while British business people could never raise large amount of cash.Due to PAYE.
The same has happened in Australia over the last few decades,Overseas people have purchased top properties as they were not taxed in their country,and yet the struggling Australians were heavly taxed.
A tax of 25% on all transactions would put more money back in the economy as well as reducing the myriad of other taxes.
Parking Fines and payments,Local State and Federal levies,Council Rates.
The average earns $500 per week pays $90 in PAYE.
This amount may shock many but the vast majority of trades and factory employees who pay most of the Governmnets PAYE tax earn $500 per week ,so a couple have a take home income of $820 to pay for all the taxes I have previously mentioned.