If there was any doubt that increasing taxes reduces government tax revenues the Greek economic crisis proves it.
Despite massive increases in taxes over the past 3 years, tax revenues have actually declined. 3% decline from 2010-2011
Despite all the salary cuts somehow the Greek government has actaully managed to increase spending from 2010 to 2011 by nearly 5%.
Incredible. I can only assume the increased spending is on troika hospitality and increased interest payments
From Athens News
|Jan-Nov 2011||Jan-Nov 2010||Change (%)||11-month 2011 target|