A trend has emerged amongst governments across the western world of responding to the high debt burdens by implementing new strategies to tax the middle and wealthy classes. The reality is that such a strategy will not work for the simple reason that it will never generate sufficient tax revenues to solve the deficit problems.
So why follow such a policy? Because its seems to be an easy fix for governments who in their short term desperation need to be seen to be acting to contain the oncoming crisis, in order to stand a chance of being re-elected. Sadly it is just too daunting for our current western leaders to grasp that nothing short of a social motivational revolution will bring about the changes needed to make our economies grow again, and enable us to pay off our debt from that new found productivity.
Key to that revolution is the recognition that those that take commercial risk and build wealth need to be encouraged and rewarded to do so by a tax structure that will encourage enterprise.