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Taxation is dropping. People are finding ways around it, and even through it. The exchanges would be used less, or they would go underground.

Taxes are meant to fund services, it should not be a competition to not have service.
The problem is that some people who are basically unemployable in the private sector get government jobs and their drug is power. They turn 'funding government into a law enforcement issue and proceed to do what the rest of law enforcement usually does, i.e., create criminals rather than limit crimes.
If you want to dig a one foot deep hole you need exactly one person and one shovel. If you hire 5 people to do the job then you aren't going to get a better hole dug. And if you start hiring tens of thousands of people to dig the little hole eventually you are going to find that tens of thousands of people are not enough. Taxes do not have to be a complicated clusterfuck.