If you refuse to obey the law, you pay a penalty which is cheaper than obeying the law?
That sounds like it is encouraging people to not obey the law.
People who do not obey the law are criminals.
If you are a criminal in one thing, then there's little reason to obey the law in other areas. After all, you're already a criminal.
Which means the government can then do whatever they want with you, whenever they want to. That is a definition of tyranny.
And the Obama Administration is doing its best to create it.