Aggressive government tax legislation stifling economic growth

I recently provided an in-depth interview for Accountingweb on the changing state of international tax legislation and set out why I believe policy makers are failing the middle classes and stifling wealth management in many key global economies.

Here are a few excerpts from the full Q&A, starting with a general overview: 
 
“We are witnessing a rapid and dramatic change in tax legislations globally. The general lack of economic growth in most countries, coupled with varying degrees of incompetence and corruption in many governments results in steadily declining public and private wealth levels. Exploding public debt is now becoming largely unserviceable, as is the case with Greece, and countries are relying on cheap government financing to pay their bills and services, dangerously inflating their country’s debt. Easy targets are the nation’s taxpayers and particularly the wealthy who are being burdened by increasing taxation, often in a desperate attempt to fix their country’s moribund finances. France is a typical example.” 

Here is what this means for many hard working middle class families:

“The middle classes are being crushed by excessive taxes - again look at France - and there is an obvious exodus and brain drain, leading to further declines. The level of the population living in poverty and unemployment continues to increase, for example, creating a dangerous ‘circulus viciosus’. We are experiencing this currently in most western countries and many countries in Asia are facing the danger of a similar deadly spiral in the future, particularly in countries where current growth rates are stalling.”
And here is how this applies to companies and investors preparing for or reacting to these changes.
 
“The key is foresight. It is a well-known fact that all governments constantly seek measures to tighten the noose around the necks of corporates and privates. Clever tax structures cross border tax planning, shifting personal residence and business activities to jurisdictions with more acceptable tax levels, or offshore center’s, or even taking up second citizenships, will give excellent protection.”