IMO that is not correct.
Normal pay roll tax could be reduced substantially but still kept.
This is about capturing the non tax paying community or well to do avoiding taxes.
For example; every dollar to pay for a cashie job to the local plumber is slightly taxed as the payment is removed from the bank.
When the plumber spends that dollar down at BCF that dollar is slightly taxed.
Taxed whether declared or not.
Also well to do folk who organise their money in tax advantagous set ups still move their cash about so any incoming or outgoing cash movement would be subject to the very small tax.
Once the average honest tax paying folk worked out that more money was captured from the tax dodger and well to do avoider and the average tax payer was better off it could gain traction.
