Theory of taxation
     In order to realize certain values and goals that we hold in common (or compromise to tolerate) in our society—which, for whatever reason, are not best realized through free participation in a market economy—we give our governing bodies the right to levy certain taxes upon us. These taxes consist of six specific types, and each plays its own economic role in distributing the tax burden efficiently and fairly. The specific amounts of each tax are to be determined as needed to uphold the values and goals of our society.
1)     The first tax is a general tax on market transactions. However, in order to maintain our maximum privacy from government invasion and maximum freedom from government influence in the types of transactions that we conduct, the tax rates on all transactions must be identical. The only exception to this tax is “value added” transactions (i.e. the various steps of production and the supply chain). All gifts (including inheritance) of significant size are effectively considered market transactions. These taxes must be applied consistently to everyone, including for-profit incorporated entities.
2)     The second tax is a state-level tax on land-space (state being a nation-state or a federal state). However, in order to maintain our maximum privacy from government invasion and maximum freedom from government influence in how we use and enjoy the land-space that is available to settlement, the tax rate on all areas of land-space must be identical. The only exception to this is that the land-space taxes may be applied differently to public entities (i.e. non-profit municipal and regional administrative districts) versus private entities (for profit).
     Furthermore, in order to maintain our maximum freedom of utilizing land-space as we wish, the land-space tax rate should be set low enough so that the occupation of the land-space is maximized. For example, the rate should be so low that at least 90% of the land-space available to settlement is claimed by either private or public entities.
3)     The third tax is a municipal and regional (village, city, county, province, etc.) tax on land-value. The administration of this tax should be left to the discretion of the municipal and regional entities for the development of their own communities on their own land-space holdings (per point 2 above).
4)      The fourth tax is on externalities. The taxes on externalities can be levied on any private behaviors that result in a significant burden to society as a whole, such as environmental pollution and self-destructive indulgence (smoking, drinking alcohol, etc.).
5)     The fifth tax is on resource extraction. These taxes are levied on natural resources that are available to all of us individually but for which we grant exclusive extraction rights in order to avoid inefficient competition and potential conflict.
6)     The sixth tax is on imports and exports. The purpose of these taxes should not be to limit or regulate trade with other countries (i.e. tax jurisdictions) but to compensate for any transactions that are circumventing the regular tax structure.