The main reason I don't like it is that it is actually too transparent. People won't see the money coming out. I think the entire system of withholding that was mandated during the Nixon administration is one of the worse aspects of the current system. If you had to personally write that check each month, or at the end of the year, you'd be a lot more congnisant of exactly how much you are being raped by our masters in washington.
If this were implemented, people would become even more disconnected from the taxes they pay than they are now. I just can't believe this is a good idea. It is especially dangerous because the actual rate of taxation is so small. People just won't see the dangers when congresscritters propose the inevitable .5% per transaction increases. It would give the bastards yet another way to hide their rapacious ways.
Amen to that. That's the same problem with a VAT. By the time the product or service makes it to the consumer, the control freaks are getting rich and the consumer is getting raped.