Was there a problem? You described a rubbish way to collect tax. I can't see it working if applied to large groups of people.
Yes, but you described it perfectly. It's rubbish. My hypothetical version just makes it more out in the open, where yours conceals it in legalese and societal norms.
Taxing is a concealed means of stealthily plundering from those who don't know you personally, and who are separated by many persons; and when questioned about the acts they commit, summarily state that they are legally empowered by their "authorized agents" whose so-called representatives of the people were voted into office in some "official" manner to create legislation purporting to protect the best interests of the majority.
All in all, it's merely a convenient way to separate the thief from the theft.