What's happening here is that one user is ABUSING the system. If they were on Amazon rating everything 1 star it would be the exact same thing. He's spamming, he's not adding content, that is formulaic spam. Those followers by and large appear only in the haijin universe, while many of them were created at once and started following en mass the donkey. The matter of taxes is legal, lawful and decent, it's not about submission at all, that's why there are exemptions to all taxes and ultimately they are there for the benefit of bankruptcy protection, insurance etc. Now back to Steem, the reason why it's not fair is not that he is playing OUTSIDE the rules, any more than let's say someone is abusing a benign and ultimately large positive of the game. The chance for abuse is there because we don't want people to be beaten into some submission and their negative actions will ultimately help build up the community, that is in the whitepaper, saying something along the lines that "you don't want to eliminate bad actors ... but you want to keep abuse from becoming rampant at the same time". In essence, then bad actors help to make for a more resilient and powerful platform, it's the challenges that they bring which we need to address.
How? KISS (keep it stupid simple). Why? To incentivize cooperation. The solution to his behavior is A: if he is small enough/not vested more than 50% of the worth of the platform that the community flags him, which means that those who hold so much of the stake have that much more responsibility in maintaining this abuse from being rampant, in doing so they will win the love of the community and their adoration is priceless, if though as you aluded that they are too large to be dealt with we could simply hardfork the community and ban him and freeze all his funds. We are not powerless against abusers. Case and point, this is not EXTORTION, this is someone possibly abusing the bankruptcy protection, the insurance and bond of their office and bypassing countless regulations that they otherwise agreed to through their choice of contracting and employment, and this post is simply someone being VERY NICE all he wants is assurance that this abuser won't abuse in a very specific way.