I think taxes help individuals about the improvement and development of a particular place or institution. It makes the society more capable of innovation with the help of the government.
However, crypto currency can stand and will develop without the help of any leaders or elite like the government. It is an independent digital currency where people can use to avoid taxes and other criminalities. I think the government are trying to control crypto for their objectives.
While all of that is true, bitcoin users definitely cannot avoid taxes. Sure we can whenever we transact to other bitcoin users but can you really use bitcoin to buy your necessities? For the most of us, we can't and some can but they simply don't. We are always exchanging our bitcoins into fiat so we can use it in real life and it has a taxation going on.
Exchanges have to pay taxes. Some don't realize that they are paying taxes whenever they exchange their bitcoin into fiat because the exchange rate has already been adjusted so we automatically pay the taxes. You can only know about this once you've done your own research. They don't include it right when you're exchanging.
Now, I wonder what would happen to our ecosystem when the government adjusts that tax to a ridiculous amount. It seems like it's the only way for the government to have control of cryptocurrency.