A formula for failure

Going over the top introducing new, higher taxes never has the anticipated results; quite the opposite, in fact. This is a simple truth the Greek governing coalition just does not want to acknowledge.

The facts, however, are indisputable. It has been proven both in Greece and in many other parts of the world that overtaxation either leads to a stronger shadow economy, and an increase in contraband smuggling, or to a rapid decline in consumption by cash-trapped taxpayers. Of course it can also lead to a combination of the two, which is where we are headed now.

Despite this knowledge and numerous warnings from experts, the government is insisting on squaring the fiscal circle by pursuing this very method of revenue-raising. The consequences will soon be all too apparent as the state coffers wait in vain for a windfall.