Greek government officials (and to some extent also the country’s creditors) are making the same mistake as their predecessors. They believe that they can increase tax revenue just by raising tax rates.
Too bad this is not simple math. Raising taxes will only result in greater tax evasion because that section of the population which is already bearing the brunt of taxes simply cannot shoulder any more of the burden.
A large number of law-abiding citizens are at a loss. The leftist-led government needs to broaden the country’s tax base. Clamping down on tax evasion by means of investigating lists of people with money in foreign bank accounts and so on is a welcome move, but it can only reap so much money – and certainly not enough to solve the problem.
Excessive taxation will kill the remaining productive forces within this country.