I have a cunning plan. No it won’t work because human beings suck. But let it work for the hypothetical. If I don’t earn money, I don’t have to pay income tax. Conceivably, if I could generate my own power (let’s keep this easy, use solar panels) and grow my own food, and don’t break any laws, I wouldn’t need to interact with the federal government, would I? I could live in my compound in relative peace. I’d still have to pay some kind of land tax, I suppose, but that’s it.
Scale it up some. Now I own a large parcel in Wyoming, let’s call it 1600 square miles. All mine, and I’ve got sufficient US $ in savings to pay the projected property tax for the next 100 years. As above, I’m making my own off-grid, totally clean power and I’m growing my own completely vegan food. I invite others to come hang with me (sounds like a commune, and I suppose it is). So, this commune is well-organized and eventually becomes quite large. As people commit to living here they leave their US currency in a shared account banked maybe in Nebraska. That account is able to buy adjacent parcels of land so the territory grows as the population swells. Everything is nice and legal, and we’re not causing any trouble.
Is there a conceivable limit to how large our population can get before the federal government starts to feel the bite financially? Suppose, as we grow, the locals see that we’re living the good life and donate their land and join in? And suppose it gets big enough the Wyoming state government just quits because the lifestyle model we offer is far superior to corrupt old-fashioned democracy. Eventually, Wyoming functionally ceases to exist as a state, and in its place is a really, really big residence. Maybe Wyoming stops sending representatives & senators to play in DC. And so it grows, potentially absorbing other states.
For purposes of this exercise, everybody behaves themselves, and nobody hoards stuff. To the extent there is misdemeanor-type crime, it is dealt with humanely and fairly. Maybe the perpetrator spends time working an unpleasant but necessary construction project, or doing some other community service to mend the social fabric his actions have damaged. The rule to live here is, “Take what you need, give what you can.”
The whole thing becomes this massive, encysted, self-sustaining household that doesn’t use money, doesn’t import or export anything, and doesn’t violate federal laws (drugs the US government finds distasteful are still a no-no, for instance). At what point, and under what pretext, could the feds step in and … do what? At some point the Federal government would be unable to sustain itself because nobody works for dollars and there’s no tax money coming in.