I agree this one is terrible, but I don't think it's because this one is racketeering.
If we think this tax is a racket, we should equally think that all taxes are a racket. That's because your "Try not paying it" argument applies to all taxes.
If we think this tax is uniquely bad, there should be another reason that it's bad. Which is my point.
Which is fine in general, just not specific to this particular tax.