Oil to Pension Fund Model with Taxation
J K
This is a heavily simplified model of the revenue generated by oil extraction and the pension fund. The oil reserves are a stock already considered in monetary value. Every year part of this stock goes to people working in the oil industry, the shareholders, or directly into the pension fund. Part of the workers' wages go to the pension fund as long as there are wages coming from the oil company. This money flow is stopped once the oil reserves are depleted. The payouts to the shareholders are not taxed, however the wealth of the shareholders is flat-taxed with a fixed percentage. This flow is nicknamed "Tax the Rich".