When you're a small incompetent corrupt country, a sovereign wealth fund is the last thing you want. Like dumping gasoline on a fire. Whereas cutting taxes - well, it may not be optimal, but it's harder to corrupt, is transparent and publicly observable, and easy to implement.
Not following the phrasing: "Whereas cutting taxes - well, it may not be optimal, but it's harder to corrupt, is transparent and publicly observable, and easy to implement."
Cutting taxes is harder to corrupt? The removal of taxes is good because the country can't properly collect taxes in the first place?
Indeed. "Please pay us 100 rubles for house tax." "But house tax was abolished last year thanks to the AI revenues!" "Er..."
> The removal of taxes is good because the country can't properly collect taxes in the first place?
Sure. Look at Russia's infamous 'tax audits'. ("For my friends, everything; for my enemies, the law.") And then deadweight losses, overhead from dodging it, stuff being driven in to blackmarkets, manipulation of tax regs (the more complicated the better) to subsidize connected oligarchs... The more nominally powerful but incompetent a government is, the worse.
