If you bought KYC, they know how much you bought. Mixing it doesn't take that fact away.

Imagine the conversation:

Gov: You bought N bitcoin on this date at this price, please pay unrealized gains taxes on it.

(mixing seems irrelevant here)

The Bitcoiner: Um, but I don't own the coins anymore.

Gov: Prove it. Show us your transaction trail and where it was sold, and the CGT you paid at sale time.

The Bitcoiner: Actually, I lost the wallet with the coins in a boating accident.

I'm not sure how they will try to prove whether someone does in fact own it or not.

With AI (or smart pattern analysis algos) it's likely they can identify correlations between KYC fiat income (eg. bank debits) and transactions downstream (post-mixing) of your KYC addresses they know.  Off-ramps will be heavily monitored to find these I'm sure. 
So cash would be the only safe transaction, if they aren't watching with drones / street cameras and AI at that time.

Man I'm super black-pilling now. Haven't actually thought about this before.. 

 You want a Monero parallel economy now. But all you get from Bitcoiners is shitting on it.

I tell you one thing. Bitcoiners aversion against Monero will hurt them more than the people seeing the value in Monero today. But it will hurt all of us as now is the time to get dark.

All data that gets produced today and tomorrow ... will get used against all of us.

Now how would transparent and taxable at will Bitcoin where the majority of coins belong to government differentiate itself from a CBDC. Correct it won't. They would use the BTC now in their possession to starve and seize miners getting rid of 21M limit next.

Bitcoiners got lazy. They are not thinking anymore in adversarial ways. It's a problem. 

 Fuk boys your scaring benny! Feels like what you're all saying is that with BTC no matter what the gov will get theirs one way or the other .... 

 Just try not to buy KYC 

 Further to that probably via cash aswell? So far all my nonkyc is etransfers, probably easily discernable. Not really kyc free 😔 

 If they decide they want it they will get it. Question with self custody is how long you think you can hold out and if the pain is worth the hold. Flip side if it’s mass adoption then govt also has a problem, how hard can they push when the populous wants to keep their bitcoin. The real battle is in education and mass adoption (self custody) before the ETF’s take over