TAXES

You get taxes from your people and I know there no money in game but make it where it gives you material instead. This will then bring another reason/purpose to have more people

Well if you think about it, all of your people kindda work for you for free... You provide them with all the means and instruments of production, and you collect all the products. What's the point of taxes when your people get nothing but what is distributed to them, and directly by you?
In a "society" like this, the only meaning of tax I can think of is basically to control the whole distribution process. Like when you want less of product A, you put more taxes on it. But that you can already do in the game.

Unity = Taxes

this is a communist society, not capitalist, you American pigs :P (I'm joking)
I'm against this idea - there is no justification for having the settlement "produce" anything but providing the man-power to operate the buildings and machinery in the game

If you have taxes, you need IRS agents.
If you have IRS agents, you need jails to house the tax cheats.
If you have jails, you need cops to man them.
If you have cops, you have criminals. And they all hate each other.
Its a vicious cycle!
Also, if you have taxes, some of your citizens want higher taxes to support social programs. And you have other citizens who disagree and want lower taxes and want the others to starve and get sick because they don't have health insurance.
Then you have unrest as the two factions demonize each other...and UNITY IS DESTROYED!!!
Its a vicious cycle!