Long ago the once great Roman Empire collapsed in the West bringing over 800 years of darkness, anarchy and other Somalia-like chaos. During this time a new governing system, based on the nobility, came to power. To support themselves, the nobles created a tax system in which the peasants were ether tined to the land as serfs or owned outright as slaves. These peasants were to create wealth (food and property more then money at the time) which was then confiscated almost in it's entirety. Then civilization returned and the age of nation-states began. At 1st the old feudal system remained largely unchanged, the monarchs simply becoming the head of their nobilities de facto as well as de jour. Soon however the monarchs and their nobilities became, at best, figureheads and at worse, were wiped out by the new republics. The feudal economy began to collapse, displaced by capitalism at 1st and was finally wiped out completely by the successful overthrow of the Russian Empire by the socialists.
Still, 1 major feudal system remained in place, the taxes. Now the people as a whole, not just peasants, create wealth, that wealth is now counted as money for the most part and it's confiscated not by nobles but by central gov'ts. This system violates modern Western ideals of personal freedom and the individual sovereignty dictated, albeit with different interpretations, by the now dominant capitalist and socialist economic schools of thought. The result is systematic inefficiency, corruption and general populist anger.
We have an outdated tax system too slow to adapt to economic shifts and too damaging to the wealth of the workers and businesses. We need a new system not based on the seizing of personal wealth but on the idea of a self-funding gov'ts. We need gov'ts that don't deficit spend or even balance a budget but rather gov'ts that turn a profit. Such a system would allow for the financing of gov'ts without the need of the punishing taxes as they are known now while increasing the efficiency of gov'ts by inherently generating more funds then get spent. The more a gov't spends with this system (if spent wisely), the more funding it would receive as the investment payed itself back. An example, a multi-billion dollar power plant would pay for itself within a few years as it operated on a for-profit basis, the people freed from having to pay taxes to fund it and the profits allowing the reigning gov't to forgo taxation for other projects. This opposed to the current need to tax the people to fund construction, the profits going to the private business that owns the power plant and the reigning gov't needing to tax the people once more to fund itself.
Such a system, based on profitable infrastructure, would at 1st seem like the status quo but consider this: You currently pay your utility bills, as a result you lights stay on, the water keeps flowing, the garbage get's picked up and you maintain communications with the outside world. You then turn around and pay taxes to keep the roads paved, the cops patrolling and the firefighters keeping the flames at bay. In my proposed system, you pay the utility bills and nothing more as the profits pay for what your taxes do now.
Obviously it's far more complicated then this and I'll happily explain further to any that ask but to avoid a wall-o-text, I'll end this here with the basics explained.