You can’t keep fleecing the tax compliant and ignoring the non compliant without the compliant waking up to that fact

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I rather liked this comment, from someone I know to be an accountant, on the blog this morning (I have edited slightly as I quote only in part):

HM Revenue & Customs live on a myth. That is the way their current systems are designed. Yes there might be a law of diminishing returns or a cost/benefit re the collection of further taxes but a) I don’t think we have reached maximum tax take yet and b) you can’t keep fleecing the tax compliant and ignoring the non compliant without the compliant waking up to that fact.

This is the myth and far too many politicians are willing to go along with it too.

The pretence is that we can't hit the poor SME sector harder - and that's right in a sense because those in that sector who are paying what is expected of them do settle a reasonable share of taxes in many cases (not all: I exclude some obvious avoidance schemes and arrangements such as umbrella companies). But the fact is that those who do pay are being seriously undermined - to the point that their businesses aren't viable - because HMRC persistently ignores the non-compliant and that is eroding the fabric of British commerce.

When will people realise that closing the tax gap makes business sense?