> I can agree with that idea, to an extent. If something is near impossible (not saying this is), then it does become not worth it.

FATCA law makes this very possible in the US.

> How do you tax that? The government can't take one third of the business, at least not without a lot of issues (in business dealings and individual rights)

I would say that the government can and should and simply be a passive share holder with no voting rights.