The political leaders talking like they want to improve economy but everything they do is taking down people can see that they want to add more taxes well it's a high pressiure on people.
Off course goverment knows exbiacly that higher taxes killing but keep going, perhaps we have reached to the point when something got be sacraficed in this case small company owners or self employers will take the hardest hit but some how some ways big corporations just keep earning and still pay little or no taxes.
It seems like they really want to kill economy perhaps it's time to let air out and pop the bubble to restart everything again from the down point seems like that's what the goverments are doing now.
High taxes kills small scale businesses, because they are still expanding and trying to grow with little resources and workforce, unlike multinationals that have good financial background and can Withstand any form of taxation, so once the pressure is on growing businesses, they will begin to either retrench there workforce in other to meet up with their wage bills. Taxation is one aspect of economy that if no properly manage can cause high level of inflation, because if there is high tax on businesses, most businesses will in return increase the prices of their goods to meet up with the reality on ground, thereby causing inflammation on high and it will triple down to the individuals. So in most cases when government want to increase tax they are very mindful so they won't cause economic crisis.