Now once I have reported those transactions and by law also reported (e.g. in the USA IRS Form 1099) the identities of who I have received the coins from and sold them to, then I've reveal my anonymity, the anonymity of the entities I transacted with, and reduced the anonymity set on the block chain for all those who mixed their ring signatures with mine.
Is there anything that you consider out of bounds for taxman? When they take your kids and put them in perpetual slavery, still OK? Oh, wait.. bad example. Take your money when you want to leave country? Oh, wait...
Seems that they have already crossed the line and become enemies of liberty, for many. What more can they do so that you still feel is OK?