The Wikipedia definition is more apt here, and solves the confusion that you're having:
Extortion (also called shakedown, outwrestling, and exaction) is a criminal offense of obtaining money, property, or services from a person, entity, or institution, through coercion.
It's not a criminal offense when the government is doing it legally, which they are in this case because the legislature passed a law through the normal process.
It's saying that extorsion is a criminal offense, not that only criminal offences can be extorsions. In other words, the criminal offense originate from the act of extorsion, not the reverse.
Even admitting that there can be some taxes that are less kosher than others even if legal, how is that the cars here? How is this different than any other consumption tax?
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The Wikipedia definition is more apt here, and solves the confusion that you're having:
It's not a criminal offense when the government is doing it legally, which they are in this case because the legislature passed a law through the normal process.
Do you call all taxation "theft" as well?
I think you misread that sentence.
It's saying that extorsion is a criminal offense, not that only criminal offences can be extorsions. In other words, the criminal offense originate from the act of extorsion, not the reverse.
See also, Freedom to Fascism on the legality or illegality of personal income tax in USA:
https://www.youtube.com/watch?v=O6ayb02bwp0
Even admitting that there can be some taxes that are less kosher than others even if legal, how is that the cars here? How is this different than any other consumption tax?
In your distinction, the operable word is "criminal".
Curiously, it is the government who defines the term "criminal".