This is a checklist of things you need to have for proper extortion. It is by no means a complete list or in order of importance (except that a monopoly on compulsory education, which is number one). 

• Compulsory public education, the basis of every state is indoctrination of future tax slaves
• Monopoly on violence
• A ban on murder (for the slaves)
• Monopoly on justice
• Monopoly on infrastructure
• A ban on monopolies (for the slaves)
• Monopoly on money creation
• A ban on counterfeiting (for the slaves)
• Regulate communication
• Regulate health care
• Regulate pensions
• Regulate the media
• A ban on regulation (for the slaves)
• A monopoly on gambling
• A ban on gambling (for the slaves)
• Income tax
• Property tax
• Death tax
• Vat/sales tax
• Zoning laws
• Minimum wages/Union protective legislation => creates fear of job loss
• Rent Controls
• Subsidize science
• Ban prostitution/drugs/abortion/euthanasia/slum lords/loan sharks
• Tax deduction for religions
• Some kind of manufactored consent of the subjects
• Tariffs on import
• Tariffs on export
• Development aid
• Laws on intellectual property