[jwie]

This is essentially the purpose of money laundering, so a lot.

[thfuran]

No, money laundering exists largely because we don't have that. They're talking about just declaring the income from selling drugs on tax filings.

[lupire]

jwie has the argument slightly wrong. Taxes are a side benefit of money laundering, which makes it unnecessary to report drug income directly for taxes. Money laundering's purpose is to fabricate proof of legal income, to divert suspicion from the observable existence of wealth that has no legal explanation.

[gumby]

Non-IRS authorities (e.g. FINCEN) can also track the flow so in the US money laundering is more to thwart them, though lower taxes is a bonus.