"What do you get when you drop taxes? Well, Bitcoins." Source: EconoMonitor : Great Leap Forward » DO WE NEED TAXES? THE MMT PERSPECTIVE.Well, not necessarily.
"MMT claims government doesn't need taxes" to be able to issue money.
The MMT argument is that the government couldn't declare the government-issued currency as the only legal tender/currency without requiring people to have it to be able to pay for something required by the government itself.
The threat of random IRS audits is the main, but not only, incentive to avoid the coercive punishment of the state for non- or low-payment of taxes.
Why wouldn't the threat of random checks of retail and other accounts be just as effective?
If you are shown to be dealing in a non-legal currency, you'd be fined. If you couldn't come up with the legal currency to pay the fine, you'd be punished, possibly imprisoned depending.
I do not believe that taxes, per se, are required. I believe Randy made that point himself by referring to other than taxes: fines.
Of course, if all the people would simply be honest and if the government would issue all the currency needed, the whole issue would be moot.