Taxes. Oh boy. Examples of things that Jews should have kept far away from:

http://en.wikipedia.org/wiki/Stamp_Act_1765#Protests_in_the_streets

http://en.wikipedia.org/wiki/Boston_tea_party

Nothing makes Jews look worse, in my opinion, than endorsing a conformist herd mentality regarding morals legislation in an explicitly secular republic. Maybe not now, but Jews in America have a strong history of advancing the civil libertarian principles of the American republic in a way that often purchases some short term infamy (think of majoritarian backlashes against organizations such as the ACLU, for instance).  The trade-off is that, unlike malchutei (i.e. "kingdoms"), modern-day republics require the occasional acknowledgment of their core principles in order to ensure their longevity over the long-run, no matter how unpopular those acknowledgments are at the moments when they most require acknowledging - and those same Jews provide some of the best examples when it comes to that.  

Methinks the Jewish law in question needs to be updated in light of the tensions inherent in political systems nowadays. Pleasing the foreign king and the subjects of his realm was probably more important to the survival and well-being of Jews when the Babylonian talmud was being compiled than it is in a post-enlightenment world that acknowledges the primacy of individual rights over legally antiquated cultural artifacts - no matter how often that is forgotten.

Were illegal Jewish immigrants to Mandatory Palestine being counted in the censuses and paying their taxes?

Hmmm...