During the past few years, the government of Greece has implemented gradual increases in several tax rates. The government has raised the top basic income tax rate applied to households to 42%, which is among the highest in Europe. In addition, it has increased the corporate tax rate from 20% to 33%. The intention was for these higher tax rates to generate billions of dollars in new tax revenues. However, they have found that tax revenues have declined slightly. Why do you think this happened? How are the higher tax rates affecting incentives of tax paying citizens?