Asklemmy

There are plenty of governments that do that. Cuba, China, Vietnam, Korea, the late Soviet Union.

While Stalinist ultraleft economic policies were not so generous to small businesses, the new Chinese model (which has been adopted by most Socialist states, bar Korea, which hews still to the failed Stalinist model) focuses on nationalization of heavy industry (steel, aggregate, resource extraction, refinery) while allowing consumer goods and small-scale retail to remain in the hands of business owners.

The reason this doesn't happen in the West or its neocolonies is that it hampers the wealth and resource extraction of the international finance capital class.

You know who has the government's ear? Ultra rich people. And they feed the legislators the horror scenario that higher taxes would mean they take their money and all their business and all the jobs attached to those to somewhere with lower taxes. And then they won't get more in tax revenue while at the same time increasing benefits spending. It's the billionaires' lose/lose scenario. It's a powerful narrative. The only way to fix this is to have all countries adopt similar tax codes. And that is about as likely as Putin getting the Nobel Peace Prize.