I would definitely not want to give my money to thieves, but it's not always as simple as an option.
Even with bitcoin only revenues, if you simply don't declare any income above the exemption threshold, that might look suspicious.
How would you buy anything significant, for example a house, if practically all your savings are undeclared? Perhaps via debt that would be possible but then you'd need to declare some income compatible with the debt you're paying.
Also, if you're just an employee an your employer declares everything he pays you, then being it in bitcoin, cash or whatever it doesn't matter, the taxman will get you.
Anyways, I answered with "depends on the risks".
You definitely bring up a lot of good points. There are already a ton of people that understate their income (think people in the service industry). But I doubt the IRS cares much about them anyways because they don't really make that much to begin with. It would definitely be more difficult for the middle class because they are the ones making larger purchases that could come up on the IRS radar. It'll probably be very gradual - kinda like bittorrent. A couple people get caught & fined in the beginning, but eventually there are so many people doing it, it is pointless to go after individuals. Also that lack of revenue is going to start affecting the IRS budget, forcing them to downsize, making it even more difficult to catch people. Once it gets to a certain level, larger transactions like houses will be a drop in the bucket compared to large corporations understating billions. But I can only hope & dream.
Depends on which taxes you are refering to. Taxes that support the infrastructure that I use to live the modern life I choose, then yes. All that federal crap can eat it...
If I could allocate my tax dollars, bitcoin won't seem near as revolutionizing.
I voted "yes" - but that assumes a reasonably functioning goverment that mostly represents the interest of the people, provides social care to those who need it, and keeps for-profit businesses out of air, water, and basic healthcare business. Don't laugh.
I'd consider paying taxes too if it worked that way. But it doesn't. And continuing to support it by paying your taxes is only going to keep the status quo.