My ideal government would be decentralized. The national government would be tiny, maintaining a national military and acting as a mediator between smaller governments. Local governments would hold a great deal of power and local citizens would control the means of production. There would be many powerful small governments, but no centralized big government. No big corporations.
The people would be taxed using a flat sales tax for necessary government services, but extra projects would be funded by inflation-indexed rate-capped government bonds. This way debt would be more fine-tuned by individual communities – and the nation would have less chance of overspending (especially on a national level).
Because communities would own patents collectively (granted by the national government), to foster innovation and productivity, large one-time cash awards and honors should be given to innovators. Say 10x the median income. This would ensure people were still excited about innovating, but prevent multi-billion dollar entities, groups, or people from concentrating power. Because local governments and people would benefit from innovators, they would be highly sought after. The local governments would set wages accordingly to keep and attract promising people. This would ensure that mediocrity didn’t run rampant.
Everyone would own arms, and participate in government/community at some level (even if it was just picking up trash in the park). This would make people feel connected with their community, and likely lead to more voluntary government involvement. Decisions at the local level would be made via direct democracy. State and national decisions would be made via representations. The overarching system would be a republic.
Governments would not be able to turn people away, but they could have policies in place to provide very low wages to new members of the community. Children would also become new members of the community when they were able to vote (which should require some type of national test, rather than an age requirement). This should lead to relatively normalized living conditions, and starting wages would not go too low (to deter new members) if people knew it would also affect their children.
I think that under a system like this, people would be guaranteed basic wages, but innovation would still be highly prized. Communities would become meaningful and cohesive, and people would not be making as many decisions while being removed from the effects of those decisions. Power would be with the people – political and economic power, both.