If it is INCOME then it should be reported, if it is simply a private sale or purchase, no. Fair is fair, if income is taxable, which it is and different topic about whether we should have taxes, then everyone should report and pay their fair share. Tax evasion is wrong, especially wrong answer to whether we should have taxes and how much. And yes, tax cheats should be prosecuted.
I think some of the concerns people have are that, they will get a 1099 form which has the lump sum total dollar amount of all their transactions for the year. And then the IRS presumption would be this is all income and then it will be up to you upon audit to justify not reporting that as income.
At least that’s what I gather from hearing people discuss this issue. Also $600 is a pretty low threshold to be reporting transactions for the year.
I don’t have a venmo account or PayPal so this doesn’t affect me. But I get the impression many people use these venmo type accounts for private transactions, and not because they are running a business and generating income. But the way taxes work and IRS audits work, it will be up to you to justify if you did not report that dollar amount on your income tax returns.