Barak has made the best point. The best revolt we could platform is an economic embargo to the government. A mass, nation wide boycott of paying taxes would be the most peaceful method on behalf of the people; although no telling how the politicos would react when their personal power dried up from lack of funds.
A tax revolt is moral and peaceful except for the first few victims; the only real problem with it is that it won't work.
The government has three sources of money: taxation, monetization, and borrowing. Or perhaps more colloquially, stealing, counterfeiting, and promising to steal.
A tax revolt eliminates only the first source. They can still print money and borrow it from people who believe the tax revolt will be crushed within the five- or ten- or thirty-year maturity period of the T-bills they're buying.
You have to come up with something that attacks all three sources at once, else they'll use whichever ones you didn't attack to counterattack.
The thing all three sources have in common is the dollar. If the dollar were to become less and less attractive to the general public compared to something else that was essentially untaxable, then this is what happens to their three sources:
Taxation: The objections to taxation would wane, because people's taxable income would drop precipitously. Raising taxes would make the income drop even more precipitously. You want to tax me at 100%? Okay, fine. I made three dollars last year: here you go. How was I able to live on only three (minus three) dollars? Gee, interesting question. I guess I must just have some really nice neighbors and Internet buddies.
Monetization: Dollars would be worth very little if anything, and nobody would want to be paid in them, because...well, because they wouldn't be able to use them for anything, because nobody would want to be paid in them. The government could print up as many trillions as it had warehouses for, and in those warehouses is where they would sit.
Borrowing: If nobody wants dollars, who's going to buy dollar-denominated government instruments, even if the government promised an interest rate of 100%? 100% of essentially nothing is essentially nothing. Screw you and your T-bills; I'll barter Bitcoins over the Internet for shares of startups.
Don't boycott the IRS; boycott the
dollar. And not because you're sacrificially freedom-minded: because you'll be wealthier and your life will be better if you do.
If we can get free-market private currencies to that point, no government in the world will be able to stand against it.
