It isn't the free market (whether it's called capitalism or laissez faire) that's the problem...it's when what should be a limited government serving its constituents interferes through coercion and fraud, to skew the results to the benefit of some special interests and the loss of those not so favored, that should be a focus of attention.

For instance, what are the justifications/ramifications of "the state" taking a share of every transaction in the form of sales tax in the transfer of purely digital "products" over the Internet, the bandwidth or use of which has already been paid for (including tax) by the seller and buyer?

Also the "funds" used for such transactions being usually purely digital as well, what gives "the state" (those claiming to act on behalf of everyone) a right to lay claim to such otherwise private property (including personal time/effort invested) without full and fair compensation for the confiscation?