Ofgem calls for ministers to rethink price cap.

Anecdotes really wont go far here. People do things that are risky and difficult to make money - and so, if you take that money off them, they have less reason to do it. You are trying to argue that water goes uphill because you saw it happen.

The answer to taxation and government funding?

From the top -
There are (broadly speaking) two things people do to make money.

1) They notice something is scarce, act to reduce that scarcity and get paid for it.
2) They hold a restriction / license and get paid to lift it (or they exploit it for the trading advantage it represents)

Government should tax 1 lightly (ideally not at all) and 2 heavily (100% market value).

Government funding should be restricted to the licences / deeds it can sell/rent - ie the value of its power and usefulness

This would mean (ideally) that citizens can trade in non-contraband and employ each other without having to notify the government or worry they somehow are breaking the law

It would also mean that government is incentivised to provide good services - bad services will mean low receipts. it will also mean that, because a government is limited to the value of what it provides, its own waste and inefficiency becomes is own problem, rather than everyone else's

The disparity is caused by the tax system - the wealth of these people is largely sourced from things like barriers to trade / licences etc. These objective government items are not paid for properly and instead the government tries to collect such vagueries as profits and earnings from everyone. The result is a very unbalanced trade environment where the big boys hold all the cards and the government chases everyone else to pay for them.

It's corrupt of course.