"Whenever their public needs permit, everyone should be free, as far as possible"
That would be the quote my society would be based on. While you hurt nobody else you should eb allowed to do what you desire and society and law would be absolutely minimized.
Instead of having laws about all kinds of different situations that we want to ban we would have overall law that cover a wide variety of situations. for example, there would be a law about invasion of privacy and that law would be applied to cases ranging from harrasment to reading your emails. Depending on the damage done and what other crimes were commited in the proccess other laws would be applied. Such as in the case of breaking into someones home it would be invasion of privacy + physical violence + stealing applied on this case instead of a specific law about "breaking into peoples homes"
This would minimize the growth of laws and keep it accesible to the normal person. Right now law books are huge which creates a feeling of separation for the normal person on the street. Being unable to understand how the society punishes its criminals is very damaging to the moral of the society.
The court would be based on a panel of people on a rotating basis. The panel would have 3 laymen members selected at random from the community, 3 lawyers/judges/lawspeakers anyone who passes a state administered test on the ability to remember and apply the law and 1 who represents the victim 1 who represents the perpetrator and 1 who represents the state. These 9 memebers would debate the crime in the open unless either the victim/state/perpetrator asks for it to be conducted in private at which point a 5-4 majority has to be acomplished for that to happen.
The victims and the perpetrators representatives would be selected by those they represent and would work much in the same manner as lawyers do these days. They would be tasked to do the meat and bones side of the legal argument, going over the evidence and trying to convince the other memebers that their "client" is in the right.
For the verdict to pass it would require 8-1 majority in agreement. If a deadlock is created all memebers of the board can be reshuffled and new memebers selected but this requires a 5-4 majority.
The criminal system would, as a whole, focus not on punishing actions simply for the sake of punishing. It would focus on the damages caused and mending the social problems caused by the offence. So punishments would mostly consist of paying damages, working for the victim until damages are paid or working for the state until the damages are paid.
For example: Person A rapes person B. Court reviews the case and decides that events happend as described by B. A will be forced to pay all the damages done to B, ranging from cosmetic to 10 years in psychotherapy. A is found to be a bum with no money. A is then relocated to a government run work institution where he will work for no pay until such a time as his work for the goverment is greater than the amount in damages the goverment had to pay to person B or such a time as person B decides justice has been served and petitions the court for A's release. At which point B recieves no more money from the state and the case is settled.
Example 2: Same example but A is insanely rich and could simply pay his way out of trouble and do it again in a few hours. Court decides that due to the nature of the permament damage done to person B by the crime similar percentage of person A's money and possessions are confiscated. If person B has to spend 10 years in psychotherapy then person A is also forced to pay a fine that would strip him of his money for 10 years of his life. Person B could also petition the court that the damage done to him/her and the nature of person A's wealth is such that he would not be sufficiently deterred by a fine then the court could choose from any punishment seen fit by its members ranging from chemical castration to 10 years at a forced labour camp. Once again a 8-1 majority would be required.
The goverment would provide all of its citizens with a cash fund (monthly) that is sufficient to keep them alive at the very very bottom of society even if they choose not to work at all but to get higher than the very cheapest possibility would require working. This would be done as a form of insurance by the state that nobody would be too dependant on their job to allow abuse and not to speak out. Over the long term this would pay off as stress and anxiety levels about keeping your job decrease and through that early retirement and medical bills would decrease significantly.
Care would be taken that modern tax potholes would not appear. As in a modern tax payment system where different wages have different taxations it is possible and in somecases even fairly likely that if you are at the very fence between 2 different taxation percentages earning more can give you less money in hand as the higher taxation rate kicks in.
To explain the entire tax system would be too complex but in short the idea would be that beyond a certain threshold (say, once you earn more than the poorest 10% of the people) you recieve a flat tax on the amount of money over the limit. So earning 50.000 or 500.000 would result in a similar taxation curve. 20.000 would be tax free and the remaining 30.000 or 480.000 would be taxed at a flat rate.
This would save a huge amount of time in complex tax systems and make sure that working is always a good way to earn money.
Goverment would be run on a local republican(no, not the present day US republican) system. All matters would be voted on by those effected by the decicion. Monthly everyone would recieve a letter with all the matters up for vote in the next 30 days and communities would be free to organize their political debates and proccessees as they see fit. The communal vote would always have veto over any goverment decicions in their land but goverment would be free to try to negotiate with the people in the community. The one exception to this would be war time which would require a popular vote to be taken into effect. Simple decicion by "the decider" would not be a binding declaration of war. If a war is declared on the country then the goverment is allowed to use quick emergancy powers until it organizes the popular votes neccesary to confirm the populations support for the war. Any war that does not pass a public vote will be ended by the goverment, failure to do so will result in the people being obligated to overthrow their goverment in anyway they see fit.
Internet or a similar form of communication over vast distances would be the one place that is directly controlled by the goverment under the laws that acces to and participation in information would not be inhibited in any way by local or federal level government. Local people would be free to ban things such as information about rape or bombs or dissent but internet would remain a free source of information about any topic regardless of its content. There are obvious downsides to this such as being able to post pictures of a crime you've comitted to the web and brag about it and the goverment would be unable to stop this. But this would, in my opinion, be a small price to pay for the ability to communicate openly and almost instantly with any community on the planet.
Federal level government would be in charge of creating a unified money system, post, internet, transportation, army and other things that local people would not be able to do on a large scale. But even if a federal level army exists all communities would be legally allowed to have their own army but would also be obligated to support the federal army just as a community with no army would be.
I might write more about this at a later date and excuse my atrocious amount of typos.
In essence my community would be formed around the celtic village-elder-king-highking system where the empire as a whole spanned from the isles to present day Romania.
Feel free to ask any questions.