To me closed loop is impossible not due to taxes but due to desired technology level. I could probably go buy a plot of land and try and recreate iron age technology. But most likely I would injure myself, need medical attention and have to reenter society.
Taxes aren’t also an impediment to close looped living as long as waste from the tax is returned. If you have land with a surplus of sunlight or other energy you can take in waste and create useful things with it (food etc). The greater loop of taxes has to be closed as well as well as the lesser loop.