And this is the real crux of the overall problem and immorality of taxes. It's not enough to tax your income, nor is enough to tax your spending, but everytime money changes hands (and in many cases does not change hands), it is re-taxed, again and again.
You work and get paid, your salary is taxed. You put some in the bank, and some in investments, and live on the rest. Everything you buy with the money that was already taxed, is taxed again when you spend it (and again as income for whomever you made a purchase from). Then your money sitting in the bank earns measly interest, which is taxed. And your investment earnings is also taxed. Then when pull money out of your investments, it is taxed again, and once more on what ever you purchase with that money. To add insult to injury, you purchase a home, and pay tax, then each year you have to pay tax on the property that you purchased, just to keep it, over and over till you die or your can't pay (in which they confiscate your house and property). Oh yeah, when you die, everything you owned is taxed before being given to your heirs, and then they pay more taxes on it when spend that money (or sell your house or property).
While taxes of *some* form may be required for civilization to exist, I'm of the mind set, that the only way to reduce this drastically is to greatly reduce the overall size of government in general. It will never be enough for government, as the more it grows, the more it wants to take, and the more it takes, the more it will grow. Less money needed then.