Nobody's advocating taxes as "hidden" transactions. You used the example of your bank's monthly fees... which is far less transparent than this suggestion. My bank simply emails me a reminder to check my account with them once per month. It doesn't allow me to contest or correct their accounting at all.
Your fear -- that by removing the hassle of tax preparation, people will dwell in blissful ignorance of their tax burden and the government will jack up tax rates -- is not borne out by my experiences in countries where return-free tax filing is the norm.
Your fear -- that by removing the hassle of tax preparation, people will dwell in blissful ignorance of their tax burden and the government will jack up tax rates -- is not borne out by my experiences in countries where return-free tax filing is the norm.