It occurs to me more and more often recently that the problem with taxation is not going to be fixed without a revolt. I was reminded of this with a news report about how voters in Massachusetts (Txachusetts?) are voting to eliminate their state income tax, and how all the politicians are bemoaning it as it would be horrible for the state. But I don't think so...
See, politicians in America always spend more money than they have. We have no sense of fiscal discipline, and we've run deficits at every level for so long that restraining spending is not really even a consideration any more. Look at the recent and upcoming stimulus and insider payoff packages: we've spent over a trillion dollars we don't have, when we're already $10 trillion in debt, and the only complaint was that the bills didn't have enough pork for everyone.
Eventually, this usually leads to higher taxes. For example, I predict that by the end of Obama's term(s), we will have substantially higher taxes, all his empty rhetoric promises aside. It's a somewhat inevitable consequence of socialist policies (and, I should point out, not uniformly undesirable among those advocating socialist wealth re-distribution like Obama). This is a good thing if you're an insider sucking off the teet of the ruling socialist party, and sucks if you're an average person trying to make a living and being sucked dry by said party.
What we need, as a country, is a hard limit to the amount of taxes any person is required to pay. I would make it in terms of percentage of income, since that's the form of taxes currently, although if we had a more sensible taxation system based on consumption it could certainly be a hard limit on consumption tax percentage. I think the current amount necessary to fund the federal government is around 22%, but I could be off by a bit.
Would this stop the government from running up deficits and spending more than they take in? Certainly not. However, it would likely prevent the periodic expansions of socialism in the country from draining the life-blood of the American dream from the people in the process, and give people a sense of stability with respect to the financial parasite which is our government. Moreover, when the government eventually runs out of money entirely and collapses from the weight of generations of financial malfeasance, at least the citizens will not have suffered unduly in the interim, and possibly as a result the country's economy might still be strong when the next government emerges.
That's my opinion anyway.