Only way to tax illegal earnings in reality is via a consumption tax such as GST - cash earnings are going to be spent/laundered; ergo tax gets paid. Your argument on this basis is moot - I agree with what it says about character though, and consumption of drugs or alcohol features prominently in interviews for renewing a license for this reason.
At the end of the day: why are we even discussing this? I don't think anyone (other than that dork Systolic/Cahill acolyte) disagrees with the outcome?
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