Old but interesting thread I haven't seen before appeared, w00t.
My state would certainly have high taxes, like the one I currently live in - everything works nicely enough here that I can't really convince myself it's anything else than a good idea. This is just the most boring part though.
There will always be crime (and it even arguably serves important functions in society!). There would absolutely be no death penalty in my society, but instead there would be a special punishment for people who had commited more hideous crimes. These people would have their memories temporarily blocked, and they would be sent to a Haibane Renmei-style facility with only faint memories of their crimes. In their new home, they would integrate into society and come to peace with themselves, and depart for the "real" society when they are ready for it again. Those few who can't come to terms with their sins would stay behind, in effect in life imprisonment. This of course assumes the society would have some interesting technology we don't have. ; )
Another (in my opinion) interesting point would be sports. Team sports would have the highest status, because of the importance of the collective combined with freedom of individuals to live in extraordinary ways. However, the competitive atmosphere that exists today wouldn't be there: the finest possible result would be a draw (whatever the correct term is). Players would be trained to play at their usual level whenever they are leading in points, but everyone would celebrate euphorically when a "draw" is achieved.
Assuming no extraordinary futuristic tech for this would be available, transportation through a personal automobile would be incredibly expensive - only those who like it enought to dedicate their entire lives and large amounts of funds to it could do it. The train system would be a lot more extensive than it is today, and the parts not covered by it would be supported by bicycles and collective, free bus and - in special cases - taxi services.
Air transportation would be provided by huge airships, which would serve as a symbol of the splendour of my society: there would finally be airships larger than the Hindenburg built in nazi germany, instead of our current wimpy planes. A similar attitude would be taken towards architechture: a huge amount of value would be put into the positive attitude and other additional value that beautiful, elaborate and huge buildings would give.
Is this enough rambling? ; )