Your question is tagged as "law" and "weapons". Let's start from there...
A law is only as useful as it is enforceable. No government of any world, even a dictatorship, would implement a "law" which would be that "extreme". So, the basic assumption that while it is possible for the government to enact that law, that the government will, in fact, ever do that, is not reasonable.
Further, bullets are only effectively priced because of market forces.... and the competition for bullet-manufacturers is home-made bullets.... it is surprisingly easy to make a bullet, so taxing bullets more, will just make manufacturers use unofficial channels. Which undermines the enforcement too.
Outside of that, though, the law can be circumvented by "traditional" means, like buying things from Mexico, or Canada, or "Amazon.com", whatever. Channels (even legal ones) will open up where it can happen.
So, on a practical level, the law will just divert the sales channels to alternative places, and won't necessarily resolve the original problem.
The kickback for the government will also be impressive.... I suspect an immediate "revolution" would be possible, and the government would be re-elected in no time. Politicians would almost immediately lose their funding, etc. It won't take long for the system to rebalance in a way that suits the population.
So, that brings me to the only plausible way that a system like this could happen.... slowly, and by the will of the majority.
Conceptually, taxing each bullet 1 cent, would be OK, then, a few years later, make it 5, then 20, then a dollar, and so on, until 50 years down the line the price of a bullet is mostly tax.
The process would have to be slow, and take a generation, or two...
.... funnily enough, that system works quite well. Consider your own income... there was a time, in Canada, abut 100 years ago, when that was not taxed at all. It was only during WWI that income tax was introduced in Canada. It was introduced as a temporary measure.... ;-)
The trick is to use a small wedge, and make it bigger, and bigger.
That's the only way it would work, and the scenario you present is unrealistic in any system, not just the USA