Either way, the government wins by taxing you on both transactions. Inflation is their secret weapon stealthily pushing income earners into higher tax brackets each year. As Neal and others point out, history has repeatedly shown us that once a government gains the ability to print money indiscriminately, a civilization is ultimately doomed. Those who read the hieroglyphics and act to protect themselves can avoid this fate. This may explain the incredible growth of funds moving offshore.
Privacy is high on the list.
They are wrong. Those who want the privacy that was afforded to everyone in the 1970s must go to great lengths today. Credit card and personal data, including unlisted phone numbers filled out on loan applications have a nasty habit of winding up on various mailing lists. Store discount and credit cards record your every purchase in computer data banks. Your whereabouts can be tracked if you leave your cell phone turned on or by using electronic tolls booths on any interstate highway.