Its worth remembering how the Nazis so efficiently found Jews in the Netherlands. The Dutch government kept meticulous records, including things like your name, address, and religious affiliation. That wasn't a big deal until the Nazis rolled in, throw in some level of Nazi sympathizers in the Dutch government and it wasn't hard for them to track down anyone they wanted to find.
Some entity has to be trusted with our data anyway, at least government supposed to have some accountability before the citizens, corporations have much higher incentives for profit.
Why?
It would be good to clamp down on private companies collecting that data.
I'm not arguing we don't need a government. But to silently take for granted that everything from income taxes to public roads and travel restrictions are a given jumps ahead here.
We could decide, for example, that the government shouldn't be allowed to centralize certain data and remove some of what we expect them to do instead.
How exactly government manages our data is a valid concern and in the modern world this needs to be reevaluated.
Is it actually a crime to upload a fake ID photo to a private company for age verification?
It doesn't require only trusting the government (or another corporation) today, it requires trusting all future iterations of them as well. It may be a different story if the data was periodically purged, say after each administration for example.
The government needs our records to collect taxes. So at the minimum the government must have some information. We can argue over the mechanism and trust factor but that’s not the core issue here.
The private companies doing this is the core problem. This is a service that the government could provide for free with the most safeguards.
Or perhaps you have some other proposal? And I’m not interested in the no government anarchy you propose elsewhere.