Please 'splain. It doesn't matter how you make your money. Income is not taxed.
So who is responsible for accounting the transaction, collecting the tax and transmitting it to the government? The guy who just wrote a check for his groceries? I don't think so. I assume it's the person who is PAID. That's the business owner.
Now you can say that it's no different than collecting a state sales tax, but what about transactions that here-to-for have not had a sales tax levied? Let's say you collect rents. Are YOU going to be responsible for paying and reporting to the government the taxes on every cent you receive, or is the rent payer? Forget the "income". It will fall to the person collecting the money. You won't be paying taxes 1-4 times a year. Will you have to account for it on a daily basis?
What if Mom leaves the old beater car to junior in her will? Mom won't be around to pay on that transaction. Will junior owe the sales tax on the value of the transaction?
I'm just saying that such a taxation scenario is going to make very profound changes in our lives, and may call upon a large segment of this society to account -- in minute detail -- for every transaction. We would do well to seriously contemplate the reprocussions.