Government as a machinery of the state will be difficult to overhaul as some of the reasons you actually mentioned are very prevalent and one of the most prevalent is, can people actually form the numbers, come to agreement and overhaul the whole system? This is difficult. One of the things government do to people is to sow a seed of discord amongst them. Another thing is that since most system are under the illusion of practicing democracy it will be difficult for people to come to a certain consensus as to which government should stay and which should go.
In Nigeria for example the system of taxation is totally different. While the money gotten from taxation isn't used to fund terrorism, it is being constantly embezzled rather than used to improve the lives of people.
The government themselves can afford to run the state from the state and federal revenues gotten from different sectors in the country. Nigeria is rich in crude oil and so many other cash crops. The money being generated by the educational sector in Nigeria is enough to repair and take care of the other sectors. But it seems this morning are not enough simply because they are being embezzled in bulk.
However it is only when the system ceases to exist that you can have unfair taxation like the one we have in so many countries.
Again we are back to that loophole. Most governments try to make themselves indispensable. This automatically creates relevance for everything they are doing, including taxation. I feel change is imminent.

@tipu curate