Not only does a tax hike like this redirect capital from individuals working in the market, for consumers, to those working in the state-directed-sectors of the

Not only does a tax hike like this redirect capital from individuals working in the market, for consumers, to those working in the state-directed-sectors of the economy, for political leaders, very likely leading to a less efficient allocation of capital, it also: Discourages productivity for residents of the jurisdiction and capital accumulation within the jurisduction, by reducing the reward for socially beneficial activity, like training and saving/investing money, that improves marketable skills and increases personal wealth, respectively.