The current main objective is to defeat the global economic crisis and many governments have come up with various plans on how to do that. Sometimes the actions might seem cruel, but if there is a long term benefit then it is understandable.
All is all this thesis does not sound so bad, but unfortunately some governments have decided that the only way to defeat the crisis is to raise taxes. Sometimes it really feels like the government official who make these decisions do not really understand how the economy works in real life. Of course it looks great on paper; raising taxes will provide increased income. Sadly in real life it does not work like that. Companies are struggling and unemployment levels are rising so higher tax rates will only force people to adapt shadow economy, meaning envelope salaries, evasion of taxes and other thing that will actually harm the economy. Sadly some government officials still seem not to understand the situation. In fact the government should think about lowering of taxes to promote more economic activity. As I read various news items I see that some governments have realized this fact and are actually doing the right thing.
This is the time when politicians should forget about party ratings and cease all political game to come and work together. They must understand that raising taxes means raising the dissent level of the population. A high dissent level may turn into hostility between government officials and general public. That would only decrease the stability which is a vital part of a possible recovery. I do really hope that at least someone will realize this and finally does something real instead just talking about what should be done.
