The problem here is the expectation that a central government can be responsible to collect and then redistribute tax money in an appropriate manner.
Once you accept that premise, you are doomed to fail.
Let people keep their money in the first place, and decide for themselves how to spend it.
Good philosophy; that our pols completely ignore. A pols reason for existence is wealth redistribution, with themselves taking a cut of every transaction. -- A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasury.