&gt; It might be more &quot;economically efficient&quot; whatever that means<p>It means it has smaller [deadweight loss from taxation](<a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Deadweight_loss" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Deadweight_loss</a>) than most other common taxes (which are mainly based on income or transactions).