for example, in Sweden, there is a 31% or more income tax on most people, and for high income earners, income tax rises to 50% and above. there is also an additional 25% VAT on all goods and services. the ageing population in Sweden also means that there are lesser economically active people to sustain the high taxation required. the high taxes also mean people have less to spend on consumptions, investments and savings. with lesser savings, the country may not be able to weather an economic crisis in the globalized economy, while with lesser consumption and investments, the economy will slow down due to lack in demand and supply in the market. the high tax rates also discourage people from working hard as the more they earn, the more they are taxed