Comment by dfedbeef

If by lifestyle funding you mean money laundering and tax write-offs. Have a bunch of legal-or-otherwise income? You need one person in a suit who can register a company and shuffle paper around. A bunch of retirees or something somewhere paid $1 each to your company. They even paid in cash. Hooray. Now you are a successful legal business person minus the filing fee.

Now, you're so successful you don't want to pay taxes or get audited. Your business made N dollars this year. You spent it all investing in some long term investment on paper. Damn, your businesses didn't make money now. No taxes I guess, takes money to make money. Hopefully that long term investment in several shell companies in different jurisdictions works out. Hopefully law enforcement isn't resourced enough to track it down.

Who suffers? Literally everyone else who pays into a system that's supposed to be fair. There's a tipping point where no people who make money pay into it. I suspect this has kind of already occurred tbh.