Oil is a three-letter word that is required for the smooth operation of a combustion engine. Tax is a three-letter word that is required for the smooth operation of a social infrastructure. Both words are associated with the rich being the donors and the poor benefiting from the smooth operation.
Unfortunately, the poor don’t benefit in the way they should, and governments need to be careful that they are not so hard on the rich that they stem the flow of oil or tax.
Too much pressure on the oil price and the producing nations will turn off the flow since the exploitation will become non-profitable. Too much pressure on tax rates and the same will happen: entrepreneurs will leave one country for another, unemployment will rise and the social infrastructure will drastically suffer. That is why aliya to Israel and even corporate migration are such interesting topics.
Governments should be challenged with the simple question: “Is tax working?” Capitalism isn’t the culprit, as many demonstrators would have you believe. Tax is the culprit. That is not to say that tax should be abolished – far from it. Like oil,
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