The Bank of Fun

Proposal: a national bank with big advantages: the virtual abolition of income tax and vat, and the massive simplification of the tax system

Principles

The replacement of transaction-taxes (income tax, vat) with wealth-tax.
Transaction taxes are a tax on economic activity. How crazy is that?
Wealth tax is a tax on hoarding.
Banking is, ultimately, a utility and not an industry.
You have to tax something. This system is less complex, and fairer, than the existing system. It is easy to collect and there is almost no bureaucracy. The rules are simple.

Bank is state-owned, or at least proxy-state-owned, or a franchise
Crucially, transfers between accounts are not taxed. I.e. if you pay someone by funbank money transfer, there is no tax on the transaction, and you pay no other tax e.g. vat.
tax is drawn on the average balance of the account - a regular percentage based on the avg bal over a given period. This is the wealth tax.
Withdrawals are taxed (so if you take out the money to invest elsewhere, then you pay tax)
When you die, the state gets all the money.
You do not have to bank with the bank of fun. It is state-owned, but not a monopoly. However, non-participating banks are not part of the scheme

If you spend money, you will not get taxed
encourages trickle-down and economic activity. Discourages hoarding
virtual abolition of income tax and other taxes on economic participation
the poor are taxed less
it is called the bank of fun because it encourages spending money, and hence hedonism

you cannot fool the system easily, e.g. if you convert money to assets, it is taxed. But what if you buy gold off someone else who is in the bank?
how do you buy a house? How is the inheritance of a house taxed? Is it all ok as long as the money stays in the bank?