Public key encryption, income tax and government

[michael shiplett]

"hf" == Hal Finney writes:

hf> I don't agree with the extreme position that cryptography will
hf> lead to the failure of the income tax and the destruction of the
hf> government.

hf> Consider: untraceable, anonymous transactions occur every day -
hf> not through cryptography, but through simple cash purchases at the
hf> local grocery store, gas station, department store, restaurant,
hf> and so on.

[ remainder of message deleted ]

  Cash need not remain as untraceable & anonymous as it currently is.
If you look at a piece of US paper, there is the embedded strip
(material?) on the left side giving the denomination and the
computer-readable serial number in the upper right and lower left. All
that's needed now is a law requiring merchants to scan bills as they
come in and go out.  Considering the federal activities in the banking
world, such a law is not out of the realm of possibility.

michael