How to Abolish ALL Taxation. And Why it Won't Work

Imagine this situation:

All taxation gets abolished. All of it. No exceptions.

Now, all of your work, skill, industry and enterprise, no longer gets punished for doing those great things. The production of wealth. Taxation no longer harms the world by appropriating your earned incomes by force.

But how would we fund government from now on though?

By confiscating 100% of the UN-EARNED incomes. In other words, every other kind of income stream.

Given un-earned incomes have none of your labour or capital invested in their creation, this form of revenue cannot possibly harm the results of your hard work or cripple the economic world like taxes used to.

Not to mention that it cannot be evaded. You cannot move these incomes into a tax haven. They are impossible to avoid.

And your annual tax return is one line. No need for an accountant and even uneducated people will be certain they're not paying too much or too little in revenue. Everything you give will directly account for the benefits you've received from the funding recipients - the governmment.

Why is this a dumb idea though?

There are seven billion people who prefer a Master, to freedom. 

Otherwise the policy proposal is technically perfect.