The pseudoanonimity of the system may be very bad for taxes once people - the new generation - start to learn how to become anonymous. Unless the government have NSA-tons of computer power, following the steps of every transaction to bust tax evasions would be impossible. And I don't want my government to have NSA-tons of computer power.
Isn't cash pseudo-anonymous and bad for taxes? If you get paid cash-in-hand for stuff; there's no record. Plenty of business and self-employed people work this way. All Bitcoin transactions leave a paper-trail online, all aso uthorities have to do is try connect the dots.
Cash-in-hand is good for privacy, but not possible in the internet.
It is true that all bitcoins transactions are public. But if it goes mainstream, and people learn how to use it in order to protect their identities as much as possible, it would be too costly for general monitoring.
All my bitcoin addresses are traceable. I used my bank account to buy my bitcoins and haven't move them around much. But I can create a new wallet for an informal business, receive coins from all over the world and, if I do everything correctly, it would be almost impossible for the government to link my wallet to me. I can even move money from my traceable wallet to my new wallet without the government having a clue I own them both.
Unless, of course, they REALLY want to find me (Silk Road).
Remember that I'm talking about socialist governments here: charging
everyone a lot of different taxes in different ways to fund social welfare. I'm not talking about following a specific person.