There is no reason for taxation to fund governments on all levels with a thoroughgoing Distributist  financial paradigm. The only thing you need to do is make sure that any government spending is actually aligned with an aspect(s) of Grace, one of which is the cardinal virtue of prudence, i.e. balanced thinking and action.

Besides their obvious advantages to the individual, all of the reforms of Public Banking, the dividend and discount, lowerings and eliminations of taxation, should also have a continuing reminder attending them to the effect that they were all brought about by choosing a new economic and monetary paradigm and ethic of Grace. Number one this will have been the truth, and number two acculturation of a general paradigm of Grace….is the epitome of Wisdom.