It doesn't always work because there are too many tax havens. If you increase the taxes too sharply, the rich will simply take their wealth elsewhere, and then the government gets nothing. The recent situation in France (which ended up being averted anyway) being an example, many of the countries rich debated moving their assets and businesses to Belgium or Switzerland...
Taxes can be an effective tool, but they have to make sense. You can't kill a businesses ability to compete, nor can you remove the incentives to build wealth.
Taxes can be an effective tool, but they have to make sense. You can't kill a businesses ability to compete, nor can you remove the incentives to build wealth.