The government should only be involved in the economic activities that concern the whole country. For example: taxes, social programs, medicare and medicaid just to name a few. If they get into small business and local economies, there will be too much interference and control.
Taxes should be collected based on income. Higher income citizens should be taxed more and lower income should be taxed less. There should not be an income tax and a sales tax at the same time though. It should be one or the other. Taxes should only be used in social programs and services. They should be used to help the people in need and those who cannot pay taxes on their own.
The government should play a larger role in funding for health care, social services, job creation and unemployment benefits. It should not rely solely on taxes. These are the things that the government should pay more attention to and show more interest in. It would provide a better sense of community action and care on the government's part.