Few things are more commonly misunderstood than the nature and meaning of theocracy. It is commonly assumed to be a dictatorial rule by self-appointed men who claim to rule for God. In reality, theocracy in Biblical law is the closest thing to a radical libertarianism that can be had. In Biblical law, the only civil tax was the head or poll tax, the same for all males twenty years of age and older (Ex. 30:16). This tax provided an atonement or covering for people, i.e., the covering of civil protection by the state as a ministry of justice (Rom. 13:1-4). This very limited tax was continued by the Jews after the fall of Jerusalem, and, from 768-900 A.D., helped make the Jewish princedom of Narbonne (in France) and other areas a very important and powerful realm (see Arthur J. Zuckerman: A Jewish Princedom in Feudal France 768-900; New York, N.Y.: Columbia University Press, 1965,1972). This tax was limited to half a sheckel of silver per man.
All other functions of government were financed by the tithe. Health, education, welfare, worship, etc., were all provided for by tithes and offerings. Of this tithe, one tenth (i.e., one percent of one's income) went to the priests, for worship. Perhaps an equal amount went for music, and for the care of the sanctuary. The tithe was God's tax, to provide for basic government in God's way. The second and the third tithes provided for welfare, and for the family's rest and rejoicing before the Lord (see E.A. Powell and R.J. Rushdoony: Tithing and Dominion: Ross House Books, P.O. Box 67, Vallecito, California 95251).