06-15-2016, 11:12 PM
A tax on illegal activities would be a tax on the privilege of violating the law, yes? Much in the same way as a speeding, parking, or red light violation ticket is a fee on the privilege of violating a state's traffic laws.
Also you cannot accurately look towards tax cases involving individuals to substantiate your point, as the majority of them are resolved in Tax Court as unpublished opinions or are settled during discovery in trial court--in-fact the only cases that really only go forward to appeals are the clear-cut frivolous argument ones and the majority of those are pro per.
However, there is one very intriguing (vacated) case that I have pointed you to before: Marrita Murphy and Daniel J. Leveille v. Internal Revenue Service and United States of America, No. 05-5139, D.C. Cir., (2006), VACATED in ibid., (2007). This complete 180-degree two-fer case clearly proves that there are external forces compelling the courts to maintain the status quo.