I'm not convinced, rehctub...

>>...by far the best method of restricting the cash economy would be to introduce a transaction tax. Because the vast majority of money is now paid in to (by way of wages) and withdrawn from bank accounts, there would be no dodging of the small tax.<<

Would not such a tax actually serve to encourage people to use cash at every available opportunity, rather than transact through a bank account, or a credit card?

If the ordinary citizens were not prepared to pay cash then there would be no cash economy worth speaking of.

Then there are those who barter goods or services; what to do about them?

Pericles, very few people get their payments in cash these days and, for those who insist on using cash only, they are now very small fish in a very large ocean. Even the likes of markets have to spend their money buying goods to resell and, their cash only suppliers are also drying up. So no, I don't think it's a problem.

On average I pay $310 per week in tax, tax on my earnings of between $1300 and $1400 so, if I was taxed just 2%, I would be some $282 better off each week. So too would many Australians.

Taxing money transaction, as they occur, and when they occur is far better than taxing people before they spend their money, because unlike income tax, a TT happens every single time money gets banked.

Short of removing the use of cash entirely there really isn't a lot that can stop "cashies", governments everywhere have been trying and failing for centuries.
The simple fact that a transaction tax IS fair and efficient guarantees that it will never be introduced, that's just realpolitik.
Far more could be achieved by acting immediately on trusts and an extended phasing out of negative gearing and they're equally unlikely, to say the least.

I believe there are many advantages that could accrue to individuals and communities from adopting bartering, and even their own token systems to exchange service and products.

There are examples available and maybe some videos, so I will not go further, except to say that women and retired folk especially should look carefully at the advantages. It does not mean cutting out the 'mainstream' currency, banks and so on.

Butch, I think your idea would work, but to make it practical you would have to make it a completely cashless society. I think the technology is there, at least in the developed economies like ours. As cash has been around for yonks there would still be a lot of resistance to such a move. What do you think.