It is easy to say "the rich should pay more taxes." Politicians who say this are guaranteed to win public support. But it's hard to create an adecuate tax policy that does not penalize the wealthy or tax some more than others.
In 2011 Zapatero's government approved an increase to Spain's personal income tax for people who earn more than 120,000 euro per year. At the same time, corporate taxes fell 25%. The result: the government only raised 152 million more in tax revenues, and many of the people affected by higher personal income taxes made up for it in revenue from the lower-taxed companies where they work.
This is an example of what happens when cutbacks don't respond to a structured approach and, instead, attempt to please the powerful and wealthy.
