My understanding is that this is far more than just a sales tax: it is a 1% tax on ALL financial transactions. Other proposed sales taxes to replace the income

My understanding is that this is far more than just a sales tax: it is a 1% tax on ALL financial transactions. Other proposed sales taxes to replace the income tax, such as the fair tax, generally only apply to retail sales of new consumer goods. This would go way beyond that. Write a check to your nephew for his birthday? 1% tax. Buy something used on eBay and pay for it on paypal? 1% tax. Support a project on Kickstarter? 1% tax. Get paid by your employer? They pay a 1% tax. Sell some shares of stock A in order to buy stock B? 1% tax on the sale and another 1% tax on the purchase. This one is HUGE: consider how many such transactions occur on Wall Street each day. Such a tax alone could quite likely destroy the high-speed trading industry. I'll let smarter people decide whether that's good or bad. Also consider that all of these cascade. For example: you buy a table and pay a 1% transaction fee. The store paid a 1% transaction fee when they bought the table from the manufacturer, a 1% transaction fee on the shippers who brought it to the store, and a 1% transaction fee on their rent, utilities, and other overhead. The manufacturer paid a 1% transaction fee on their raw materials, 1% to have those materials shipped, etc. I would imagine that this would strongly encourage vertical consolidation in order to avoid these intermediate transaction fees. Again, I'll let the economists figure out how good/bad that is.