The Foundation of the State

The state is based on violence.
Ultimately it is a protection racket. The basic deal from the state is that they protect you from other hoodlums and from foreigners. In return you pay them. Tax is protection money.
Taxation is the fuel that drives capitalism. Capitalism is the numbering of everything and every activity to ease the transfer of power from the ordinary person to the elite.
The state is based on the hierarchy of the armed gang.
In normal human activity there are natural leaders in one sphere or another, the best cook, the best hunter, the best weaver, the best mechanic and so on. These natural leaders are the opposite of hierarchy. Hierarchy is blind obedience based on fear and violence.
A gang of thugs comes along and demands payment for protection. The peasant has to produce a surplus in order to pay the thugs. But there are only so many clothes a thug can wear, so many pigs or sheep he can roast. So he invents a currency, be it shells, jewels,  animal skins or whatever.
One fine day a thug invents money. Money has the picture of Caesar printed upon it, the personification of the state, or the Crown if you like.
A coin, a bank note, is fundamentally a tax credit.
Surplus value is created to feed the beast of the state.
But to maintain their legitimacy, to continue the hierarchy, the state must wage war. It must find enemies abroad and enemies at home.
The enemies may be Communists or Islamists or  Christians or men or kiddie fiddlers or Israelis.
The welfare warfare state feeds on violence, it feeds on discrimination and hatred, on persecuting the Other, on gas chambers and firing squads, on identification and terror. It feeds on your taxes.