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Well, yeah, it was a dream.
That’s such a great little detail.
Most likely there were taxes, they were just hidden.
I forgot all about that!
In episode 3 or 4 (Ticket Master I think it’s called) when the ponies are all trying to bribe Twilight for her extra ticket one of the ponies says “I’ll do your taxes.” So yeah.
Not necessarily, where I live we’ve only had taxes since WW2
Of course. the only way they wouldn’t would be if they didn’t have any government. although how the taxes would work would be different.
Of course. They need some way to fund the schools, road construction, police and fire departments, libraries, assorted public structures, and healthcare, after all.
…why not both?