You can tax people by workplace by taxing their employer, and by residence by taxing them.

Each overlapping layer of governance with a democratically accountable government should have the power to tax and spend within its boundaries. Then you get redistribution of income at each level. Different levels of government would tax different things as they would have ready access to different kinds of information.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman