I don't think it's possible to avoid taxes using bitwage. They report from what I believe, and so does your employer, as usual. This has little if anything to do with taxes.
I guess you're right.
This entire line of conversion was started by this post
I think he wants to stay out of the system 100% to achieve a tax free life. So far is he is doing great, since the first step is getting paid of BTC and buying with BTC, without interaction with fiat whatsoever.
which is pretty much seems out of the blue for me.