Also proposed as "a means of encouraging more responsible trading." Meanwhile on this side of the pond:
http://www.cnbc.com/id/49333454 Mysterious Algorithm Was 4% of Trading Activity Last Week - Title should have read quotes rather than trades.
“My guess is that the algo was testing the market, as high-frequency frequently does,” says Jon Najarian, co-founder of TradeMonster.com. “As soon as they add bandwidth, the HFT crowd sees how quickly they can top out to create latency.”
Translation: The ultimate goal of many of these programs is to gum up the system so it slows down the quote feed to others and allows the computer traders (with their co-located servers at the exchanges) to gain a money-making arbitrage opportunity."
In an interview with Michael Price that another poster here linked to, he described HFT as the new way of running ahead of orders, which to me is exactly the right description.
I don't know if taxing orders is the way to go but something needs to be done. "Gumming up" the system should be illegal as manipulation. Maybe a tax is the way to fix it.