The establishment of a direct income tax on the people has been one of the most damaging factors to the American Republic facilitating overreaching power on part of the Federal Government.
The collection of Income tax has allowed the federal government to sidestep the firewall of state governments to get direct controlling access to the people.
The rise of electronic banking and electronic transactions has greatly compounded the severity of this controlling access.
The IRS with electronic banking has created an agency that is allowed to sidestep the protections of civil rights such as due process to strip a person of their property. This creates a climate of fear of retribution should people desire to push back against the tyranny of the federal government in any circumstance.
The IRS also is allowed to operate in a manner of presumed guilt on part of the federal government and take action accordingly. Individual privacy is made secondary to the IRS mission of seeking out tax cheats. The federal government has no business with a default position of knowing any individual’s financial transactions regardless of amount. This should be seen as a breach of the 4th Amendment.
This will only get worse as the feds push to develop a digital currency further increasing the potential federal ability to control time, manner, and place of how you transact your money not to mention the item by item detail of your transactions.