Quote Originally Posted by Will_D View Post
They have to be able to float in all 3 axes but still apply torque to the tap?
No they don't.
Floating tap holders assume the machinist/CAD/CAM Monkey is competent enough to align X and Y and only float in Z, this is to prevent breakage when a machine's Z feed doesn't perfectly match the required movement for the tap to maintain neutral tension.
Floating reamer holder requirements differ