Hey, So I downloaded the game and played it but the people would appear with arms wide on the floor and not do anything at the game would be very laggy and cutting trees wouldnt give wood it would all be taxed

Hi, the people on the floor are offline players. When you disconnect - you also will do nothing on the floor :) and by the way, anyone else may kill you, so, logoff in safe place.

If you gather resources with bare hands (without tool) near the townhall - you will get 100% tax (at the moment, but later i'll tune the taxing system), so, move away from that place.