"1) Cheating on taxes is quite literally stealing from every other person in the country. That being said I think there is a lot of small scale cheating going, especially for small cash-driven businesses." I disagree. One monkey says to a group of other monkeys, "we all need to take one of the 5 bananas we individually have and place it into a central banana disbursement fund". Then, another monkey from the group ref…
A monkey can live for himself, in a modern society no human is an island. You need extremely complex systems on place: Communications, education, law, law enforcement, infrastructures, etc.
Millions of human beings in a complex society are not 5 monkeys. I understand your point, but I think that it doesn't apply at this scale.