You're aware that depending on where you are in the world you can sample a vast range of development levels, so where exactly do you wish to move to have this well functioning society where people are taxed on trust alone?
I never implied taxing on trust alone, I'm simply arguing against total financial surveillance. Taxing in the mid-20th century did not rely on trust alone and it was a nice mix of trust and manual investigation in suspicious cases. I think such a mix is optimal for a predominant number of human activities and total surveillance should (almost?) never be reached for.
You can apply the same style of reasoning to end-to-end encryption. Various actors are aiming for total surveillance in that area too, it is most likely a terrible idea and we have precedent that the world works reasonably well without it.
I know, but based on context, I estimated that quip to be somewhat reactionary. The alternative is obviously not to leave out any kind of enforcement. The alternative is to go back to the kind of enforcement that was used and worked fine several decades ago.