The Local Tax Plan is simple: you pay taxes only to your most local taxing authority, whether that’s your village, town, city, county or state. That entity uses the revenue to provide services appropriate to its level of government, and forwards some to the next higher level taxing authority. Most of the revenue collected from taxes is thus used closest to where the people who paid it live. Because they have reasonable access to their locally elected officials, the people have greater control over how the money is spent. Also, the people paying the taxes have more control over their tax rates for the same reason – more access to, and accountability from, their local elected officials.
One desirable side effect of this is that there is much less money available to the Federal Government. Because of this, the Federal Government would necessarily begin to shrink. It would not happen immediately, but it would happen as local tax jurisdictions spent more of the money locally. Eventually, the Federal Government would be reduced to the minimum possible size, and therefore returned to its only valid reasons for existence: to provide for the common defense, to provide a vehicle for dealing with other countries, and to regulate interstate commerce (in the classical sense – not in the bloated, over-reaching way that the commerce clause has been interpreted over the past century or so).