Inflation wouldn't work since its used by governments as a tool to adjust import and export rates.

A alternative system to taxes would be to demand payment whenever someone uses a state resource. A shop uses roads to have goods delivered, so they should pay a percentage to the state. Customers use the road to travel to the shop, so a small price is paid by the shop to the government per customer. If someone don't want to use the roads, they are free to buy the land necessary and build their own road system.

A factory has also transported goods and employees traveling to work, but they also uses the public education that those employees has. That mean for each hired employee, the factory should pay the relative price as compensation to the state. If a factory don't want to hire state educated citizen, they are free to find a workforce elsewhere.

A internet service sends bits traveling in copper and fiber that goes through state owned land. A price per bit then is reasonable. Same goes to radio waves traveling through state owned air space. If someone don't want to pay, they are free to build their own network.

Then there is the protection racket where police and military prevents theft. Those costs has to be recovered, so a monthly price in relation to the assets being protected sounds perfectly reasonable. If someone don't want to pay, the military can always go and make a visit.

That last point is why the rich should quit whining about paying proportionately more tax. They have more to lose given a leviathan state.

Wouldn't people just store wealth in things that are out of reach of politicians inflation policies? Bitcoin, gold etc?

Another approach is to lower taxes and create less of an incentive to circumvent them in the first place...

That's why VAT is such a popular tax in Europe. It is very hard to evade. As soon as you spend money, you pay taxes.

What about VAT fraud? A couple of shell companies and not only have you evaded the tax, you've now profited from it.

It's certainly possible, but still much harder to evade than a sales tax or an income tax.

> It is very hard to evade.

Its pretty easy to get residence in a non-EU country and then reclaim the VAT when you return 'home'. Your 'non-EU' country can even be as close as Jersey.

That works for physical goods, but not for a diner in London.

Other than as a disincentive (e.g. cigarette taxes), the whole point of taxes is to clamp down on inflation.

The government certainly doesn't need taxes to create money to pay for things.

Like Zimbabwe? Seriously?