1) Yes. If you report low taxes but live a good lifestyle the tax man is coming after you.
2) Excrow... ever heard of cash. Thinking that cash is less anonymous than bitcoin is totally off base.
3) why 1%? You give no reason.. if most businesses dont accept it nobody will want your bitcoins
4) It wont become big as large, medium and small businesses wont accept it.
Sry but I feel like talking to a wall here.
1) Your all knowing tax man knows how much I spent on my household appliances and that I'm having fun with whores every night. He must be a god :O
2) Not excrow but escrow. Try paying someone living in another town with cash - you are planning to mail it to him, right?
3) I said 1% to pick the smallest number so you won't go "why 50%? nobody pays 50% for virtual goods and services". It can be even more but 1 could be enough.
4) They will, it's just a matter of time. There are many possiblilities one of which is BTC functioning along fiat, so you could freely exchange it and pay your taxes with fiat.
1) Firstly bitcoins are not anonymous (if you want to buy them via an exchange the exchange demands personal information which it will hand out to governments.) Secondly you keep assuming that maybe when bitcoin ever becomes anonymous (how?) it might be used for a fringe purporse instead of cash. Why? Why not use cash to buy household appliances and whores. Again its much more cumbersome to use bitcoin. Also you dont explain how the business selling you household appliances will evade taxes via bitcoin.
Most people will not want to evade taxes.
2) Again if this guy is operating a small/ medium/ larger business he will need to pay taxes. Having customers is a public act; if you buy stuff with profits that are physical this is true also for the software entrepreneur. How do you know what business he is operating and if he is going to report tax?
3) Again why would anybody use bitcoin for fringe small time transaction and not cash? Yes if you buy something from him and he lives in another city. But how will you know about him? Via websites offering products? Public and therefore not anonymous for the person selling these products via the web.
Serious and competent businesses dont evade taxes. Nobody wants to risk jail time.
4) No that would assume governments loosing the money monopoly. You have not addressed my points concerning small, medium and large businesses and tax controls.