Why is money laundering necessary?

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Why is money laundering necessary?

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“This little pink thing is you — get it? Pink? Pinkman? You’re partying hardy, knocking boots with the chicky-babes, when this guy comes along. This is the tax man, and he’s looking at you. He sees a young guy, in a big, fancy house, unlimited pocket money, and no job. Now, what’s the conclusion the tax man makes?”

“I’m a drug dealer.”

“EH! Wrong! Million times worse! You’re a tax cheat. So what does the tax man do? He takes every penny and you go in the can for felony tax evasion. (Saul throws the little pink thing in a garbage can.) Ouch! What was your mistake? You didn’t launder your money!”

-Saul Goodman and Jesse Pinkman, Breaking Bad.

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