I doubt they will... but "GDP growth", inflation with low bond yields will.
There's also the Cyprus card to play. Gold Reserve Act of 1934, and more.
If there is a way there is a will.
During communism in some European countries that had Zimbabwean numbers on their bills, they simply removed zeros from the bills... for simplicity of course.
So that ppl. don't have to speak in E's.

So imagine you at some point taxed your Bitcoin to an acquisition value 1E12, then 10 are removed, for simplicity of course... new bills are printed. Do they still have a taxed value 1E12?

Regardless, no such fanciness needed. Is already happening, when value of money goes down, and the value of you BTC goes up, so does the taxation in % of those BTC, regardless if you already taxed for them or not.

There are more taxation event's in the world than you can image.

Any who, if there is a way there is a will...

Let's do way with the taxes? Yes, let's to that... and see how that democracy thing will goes.. or libertarianism for that matter.

Can't find but question already stated. There is a good Discworld quote regarding that.

No Bitcoin will not fix that. But other things can...