It's even better than that. The prison system works because people in general want to avoid it and are easy to scare. When 100 people protest against taxes you can beat half of them into submission and throw the other half in jail. Things start to change when it's 1000 people as you can't just put that many people in jail. Most jails are already overcrowded and are forced to release the smallest offenders early. We can change things if we want to but we need to work together on this.
+1. Prison system has the same vulnerability as any website against DDoS attack. People just don't understand it now. Because prisons are government's most severe argument against it's opposition, prison system's collapse can mean collapse of the whole govt also.
To people who want to pay taxes from Bitcoin: are you sure the govt won't confiscate your earnings or apply large fine along with taxes because they can consider your Bitcoin earnings as illegal business? If so, don't be so trustful - there were already precedents, in Russian and Ukraine many times.