Is this fraud?
You're not cheating someone when all you are doing is protecting what is yours from a thief....that's pretty funny concept though...I can see it now...all the guys eating steak and reading playboy in the state pen complaining about how Edna stole from them when she called the cops and held them at bay with a shotgun...LOL

It's a lie, and again, the gravity of it really depends.  If you got caught, and then had to spend a night in jail because of it, you'd have a stronger sense of the gravity.  I tend to think that taxes are unjust, because some of the programs supported by taxes are clearly against God's will.  However, I'm pretty sure that the title taxes go directly to improving roads, road signs, and promoting safe travel.  I could be wrong.

The offense is considered fraud by the state.  And I suppose in some ways you could consider it stealing, because you are, in effect, taking away from taxes that are due to the state.  So I would think the gravity involves weighing the consequences of getting caught, and the amount of money that you cheated the state out of.

The problem with sins like this is that people usually lack remorse.  You can't really confess it if you're not sorry you did it and plan to do it the next time you have a transaction like this.  It's likely only venial, but deciding in your heart that things like this are just OK because it makes life easier for you means that you are attached to venial sin until you decide to think differently.  This means you cannot gain any indulgences for any of your good works, and it sets up your soul to commit bigger sins.
I agree that a case could be made (depending on circumstances of course) that withholding money from the government can be moral. However, lying to do so is not the right way to go about it. If you think that a tax is unjust, you could certainly not pay the government, but make no attempt to conceal it. If it is truly unjust taxation (being used to do something immoral) then you should be willing to call it what it is and even go to jail over it, being persecuted for doing the right thing is obviously difficult, but you wouldn't be the first. However, lying about what you are selling is not the way to go about it, two wrongs don't make a right and all that. Furthermore, it is unlikely (though certainly not impossible) that the sales tax is being used to fund something immoral. So even though I think the government wastes my tax money on a daily basis, I still have no moral reason to fight it. I can fight it via other channels (court, ballot box, etc.) based on whatever reasons I like, but without moral justification, deciding not to pay definitely sounds like a "render unto Caesar the things which are Caesar's" situation.
I'd keep the money from the government and give it to a good cause instead like a Traditional Catholic priest to say masses or an anti-abortion group like Operation Rescue.

This keeps Scipio happy as he is right that the government are little more than thieves themselves and it does some good at the same time.

It the government steal my dollars they'll just give it to bankers to spend on whores and coke.  As much as you can starve big government you should.  Avoid every tax you practically can and do some good with the loot.

As long as you do some good with the money, then I don't see it so much as stealing as re-distribution of resources on moral grounds.  I never voted for any governement to steal over 50% of my income in direct and indirect taxes.

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