The meaning of democracy is the will of the people, managed by a nation and a state. So the people has to define the meaning of a nation and a state. If democracy need a geographically recognized country, then what is a nation and what is a state? Democracy needs the Rule of Law and therefore sovereignty in the country. Democracy needs a government based on the peoples will – so the nation could be the number of citizens holding the right to vote. The rest is the state and that could be the administration and the right to enforce the law in a nation.
And the state must be financed. Most state round the world are financed by taxes on income from work. Most states round the world agree that work is the fountain of welth. Why should welth, that is the fruit of income and the meaning of economic and cultural activities, be taxed. That must be contraproductive.
Is it money makes the world go around or is it taxes?