Modi will fail to clean black money

Modi has made ₹500 and ₹1000 notes illegal. He says that this will reduce black money. I think not. Black money will come back with a vengeance within few years.
The conditions that cause black money remain as before. If black money was generated before, it will be generated after the notes are banned.

If Modi really wanted to eliminate black money, he would

• Eliminate income tax and wealth tax.
• Put a charge of say 10% on cash withdrawal from banks.
• Put a charge of say 0.1% on all electronic transactions.

This will immediately permanently eliminate all black money. Since there is no income/wealth tax, all money is white. There will never be a black money problem, ever in India.

But a dishonest person will never take these steps, because

• A dishonest politician wants to steal from poor / middle class; not his rich friends.
• If there is a flat tax then the politician's friends will also have to pay taxes. That is not acceptable to corrupt government.
• Using the sword of income tax, a corrupt government wants power to harass his opponents.