I think what he's trying to say is that minor taxation implies minor-intervention on the part of the government.
So the more taxation you have, the more funding is given to the government. The implication being that more funding means that they can institute more, or more overreaching policies that distort free-market operation.
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What do you mean? As long as the tax is low enough to not be a de facto ban, I think it's still a free market.
I think what he's trying to say is that minor taxation implies minor-intervention on the part of the government.
So the more taxation you have, the more funding is given to the government. The implication being that more funding means that they can institute more, or more overreaching policies that distort free-market operation.