Not in a city -- because cities are established and built collectively, with infrastructure, and roads, and so on. Not allowed to use and own money, because that's a public good. Not allowed to have a citizenship (because a country is about people working together). No protection from thugs (because the police is a social good), and so on?
Does it sound enticing?
But, it's not a punishment. It's just a shitty set of laws -- fortunately, laws can change.
My point is this is not true for people who are on the upper end of middle class. You can't dodge anything because your income is taxed at income tax rates, not capital gains rates. You also get all benefits stripped from you as you rise in income. Can't get any breaks on health insurance, can no longer put money into a Roth IRA... Also remember, I'm not just talking about taxes. I'm talking about taxes plus the structure of the ACA.
The system is absolutely designed to put the middle class at the largest disadvantage. Whether you want to call it unfair or a punishment seems like personal preference.