I don't know why this is happening or if it has been for a long time but i have lost 7 residents today cause of them not being able to pay for their plot and that is not a problem i could fix that but now they get kicked from town as well.

Is this something that has always been in Towny or is it new cause i think it is stupid that people lose there town position

Are you absolutely sure that they were kicked because they could not pay their plot taxes and that it's not that someone had manually kicked them from town?

Because from my understanding towny only makes you lose your property (It becomes unowned NOT for sale, which I'm grateful for because like Alba said you can hold property to give back to someone), it has never kicked a resident from my town because they could not pay.

If, of course, you don't want your residents to have to pay taxes daily you could do /plot set plottax 0 (With "plot" in "plottax" being replaced by "shop" "embassy"/etc. to set the plot tax for each type of plot).

But I really don't think it was because they couldn't pay taxes they were kicked, I don't think you can set towny to do that, only to lose plots. So I'm more inclined to think someone kicked them.

TA/Mayor can see when the day turns to a new one in the real world on the server who couldn't pay taxes and lost their plots. I'm not sure how to check that outside of just being there and seeing it in the chat, but it does show it in the chat when you're on and it occurs.

When i log on i always check my resident number to see who left got kicked etc and it said 110 and when taxes was collected as it does every day i had 108, and Alba i am 100% i do not have tax in town only server tax that i cant choice to have or not

That means you only lost two residents? 110 to 108

Here is the most likely reasoning behind it:

...

Did you set the taxes as "taxes"(a fixed amount per resident, no matter how many plots they have) or "plottaxes"(a fixed amount for every plot the resident owns)?

Taxes may force users out of towns, whereas plot taxes may only cause the loss of plots.